There still exist many unknowns about COVID-19 and its full economic impact; a lot relies on the speed in which Americans can flatten the curve and the measures taken to control the pandemic on a global scale. However, there are some silver linings bordering the clouds of dark economic news when it comes to commercial construction:
Financing is an essential component of project planning — regardless of the size of the job at hand. With the Federal Reserve shoring up the economy and rates dropping, financing is now more affordable than it ever has been. Commercial mortgage rates hover around 3-4%, providing businesses and developers an opportunity to refinance properties, increase cash flow, and improve the feasibility of pro formas for new projects.
As COVID-19 continues to affect markets globally, it's currently impacting the production of products manufactured overseas commonly used in construction. This is resulting in the dwindling availability of those products and prices inching upward as the use of costlier domestic products keep projects on schedule. As such, designers and developers need to be mindful of where materials are coming from, making sure they get what they need without overpaying.
Subcontractor and construction workforce labor availability has proved challenging in recent years, although the current economy can help give way to a reprieve. A survey conducted by the Associated General Contractors of America found that most construction projects were still moving ahead as planned, although there was still a chance of slowdowns. The end result is likely an increase in availability will become more aggressive with their pricing on upcoming projects.
Due to the pandemic's evolving nature, communication between property owners, designers, contractors, and partners is more critical than ever. The fluxing availability of labor and materials could affect schedules on active projects, making daily updates essential.
Safety Is Our Top Priority
The wellbeing of our customers, partners, and internal team members is of the utmost importance. We continue to follow CDC and state guidelines concerning work on job sites and implement measures to keep sites clean and safe.
For more information about our services, reach out to us today.