Tariffs Already Putting Pressure on Commercial Construction Pricing

Some in the sector say they have seen around a 10 percent increase in the price of steel since the tariffs were announced earlier this month.

President Donald Trump’s recently imposed tariffs on foreign steel and aluminum have not yet gone into effect. But they are already affecting deal negotiations, bottom lines and construction pricing in commercial real estate.

Some in the sector say they have seen around a 10 percent increase in the price of steel—a material whose prices have already been rising—since the tariffs were announced earlier this month. The price increase—and the uncertainty over future increases—has caused some to rework and reconsider planned projects...

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RSK: The problem here is no one yet knows how much the tariffs will affect pricing in CRE construction…maybe making lending wanting more equity for loans. A wait and see problem.



- - Volume: 6 - WEEK: 17 Date: 4/24/2018 8:32:46 AM -