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So you’ve got all the fine details of your next real estate project or development squared away; from the planning stages to financing you’ve worked it all out. Now comes the easy part – building it…right?

While breaking ground on a development (commercial or residential) signals a final stage of the project for many investors, it does not mean your due diligence should end. In fact, there are several important things to consider when you actually start developing your property. You need to be aware of current construction market factors that could affect your project in a variety of ways. Neglecting these factors could mean the difference between a successful investment and a hard lesson learned.

Construction is a lot like real estate itself in that you need to understand that it does go through market cycles. The construction market is affected by both global and local factors that you need to track.

Construction Market Factors Affecting Your Real Estate Project

• Increase in demand > construction labor supply
  • Shortage in skilled labor
• Material escalations
  • Commodities price hikes via tariffs: 25% on imported steel, 10% on imported aluminum (with certain exemptions)
  • Domestic producers can’t keep up with demand
  • Seeing price hikes in metal and lumber across the board; concrete and masonry are more market-driven

About our Guest

Frank Rygiel is the Vice President and General Manager of Walbridge Construction‘s Florida division. Walbridge has been involved in Florida’s construction market for over 30 years. With offices in Tampa and Orlando they are active in and around the I-4 corridor and throughout the rest of the state.

As an active industry leader, Frank has managed numerous large-scale commercial projects in various asset classes. His experience spans a range of developments including educational facilities, corporate campuses, hospitals, aviation facilities and high-rises.

Contact Frank

frygiel@walbridge.com

The post Ep. 154 Frank Rygiel: These Construction Market Factors Are Affecting Your Real Estate Project appeared first on Real Estate Investing in Florida.