While supply chain issues and related pricing pressures began to ease in 2022, their impact on development projects remains in many locations. In other cities, the construction market is coming back to life as companies relocate, expand, and reconfigure for hybrid workplaces.
In recent years, project management and the commercial construction industry have wrestled with inflationary pressures, causing proposed projects to taper off and developers to contend with rising borrowing costs. Fortunately, signs of recovery are evident. Material shortages, fuel surcharges and increased labor costs are slowly leveling out across many markets; and technology, manufacturing and life sciences companies continue to relocate and expand.
As businesses return to work, they are thoroughly examining the best design and utilization options for their new corporate culture. While this has resulted in challenges to both project budgets and schedules, overall vacancy rates are decreasing.
Newmark’s Program and Project Management team continues to implement innovative solutions and adopt a flexible approach to evolving client needs. Our 2023 Market Updates report outlines key data points on several markets where we operate. The report also sheds light on economic conditions and opportunities, on the shifts affecting multiple industries, and on the larger commercial real estate trends. It contains a wealth of detailed information on construction costs as well as recent or ongoing projects in each market covered.
Executive Managing Director, Program & Project Management, Global Corporate Services
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