Overall construction costs jumped by 21 percent in 2021, according to the Mortenson Construction Cost Index. While construction costs rose at the fastest pace in decades last year, 2022 is already poised to deliver an even tougher blow to real estate developers. Based on IHS Markit, monthly construction costs rose by 13.5 percent in March alone, partially due to the impact of Russia’s invasion of Ukraine (Globe St.). As replacement costs rise faster, so will property valuations, especially within the red-hot industrial market. Inflation may hamper profits for developers, but offer a windfall for existing landlords that are well-positioned in markets with high construction activity.

I N D U S T R I A L   N E W S

Upward Pressure On Construction Costs Reaches Record High
Globe St. – March 29, 2022
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Construction Costs Hit Record High: Report
Commercial Property Executive – March 25, 2022
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Industrial Unstoppable In 2022? Maybe
REjournals – March 22, 2022
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Why The Global Supply Chain Mess Is Getting So Much Worse
CNN Business – March 30, 2022
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An Amazon Warehouse In New York Has Successfully Voted To Unionize, The First Of Its Kind
Business Insider – April 1, 2022
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R E G I O N A L   N E W S

Industrial Net-Leased Portfolio In Houston Markets Sells To Local Investor 
REjournals – March 10, 2022
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New Industrial Company Ventures Into Houston Market With 426K Sf Acquisition
Bisnow – March 16, 2022
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Texas Developer New To St. Louis Breaks Ground On St. Charles County Warehouse
KSDK – March 17, 2022
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150,000 SQFT Gotham Greens Greenhouse Under Construction
At Great Western Industrial Park
Mile High CRE – March 29, 2022
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Prologis Plans 700K-Square-Foot Industrial Project In Arlington
The Real Deal – March 30, 2022
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