Construction Costs

The Grid Just Got A Number

One tenant published a power requirement large enough to reprice construction.

Two Towers, One Cost Regime, Opposite Outcomes

Producer prices split construction inflation in two. Adaptive reuse is where that split gets settled.

The Same Loan Five Percent More Expensive

Canyon lent BCT $393,000 a door in March. In August it took $415,000.

The Gap Beneath the Number

Construction input prices are climbing twice as fast as the bids builders are winning — moving the tariff off the owner's budget and onto the contractor's balance sheet, and turning the cheapest bid into a solvency question.

Tariff Relief Arrives, But Materials Bills Keep Climbing

Equipment duties just got cut — yet input prices ran ~10% hotter than a year ago.

Immigration Enforcement Isn't Filling Construction Jobs. It's Emptying Them.

U.S.-born construction employment dropped 3% in high-enforcement metros — twice the cross-sector average — because finish trades disappear when framing labor does.

Tariffs Are Rewriting Every Development Pro Forma

Materials costs are up 12.6% annualized. Sixty percent of developers have paused or killed projects. The basis just shifted underneath the entire pipeline.

Construction Backlog Stabilizes but Work Concentrated in Large Data Center Builders

AI infrastructure drives backlog growth while smaller contractors face weaker pipelines.

🟡CRE Lending Rebounds Sharply in Q2.

As Debt Funds and CMBS Fill the Void, Spreads Stabilize

🟡First Fed cut sets stage for faster CRE dealmaking and cap-rate relief

The Fed’s first rate cut in years is already shifting CRE liquidity expectations.

⚫️U.S. CRE Prices Post Back-to-Back Gains (MSCI CPPI, July)

Source: MSCI Real Assets CPPI, GlobeSt recap