Posted on August 29, 2017
The law of supply and demand hasn’t been repealed, and that’s causing commercial real estate construction prices to jump, especially in the mid-Atlantic, Texas and Louisiana.
The problem is there aren’t enough skilled laborers for all of the new construction builders would like to do. The scale of the problem increases for larger projects, which require more skill and teamwork. “There aren’t enough companies with the workforce required for such complex projects,” Perryman Construction CEO Angelo Perryman tells Forbes.
The article adds that: “Multifamily buildings from eight to 24 stories tall have increased in construction cost by $23.40 per SF from 2013 to 2016, according to a Fannie Mae study, and they are forecast to jump another $15 per SF in 2017.”
There are several ways to increase the labor force, including an increase in immigration and changing education policy to focus on preparing students for potential trade jobs.