The latest round of U.S. tariffs is reverberating across the real estate and construction sectors—and for investors, the message is clear: rising construction costs. Underwriting assumptions need to evolve. Over the past few months, the relentless inflation of material costs has been chipping away at margins and disrupting timelines across almost all asset classes. Whether you’re supporting residential communities, build-to-rent …
Margins compression on the Real Estate Market: A path to innovation for Developers
In today’s real estate market, investors and developers are confronted with the critical issue of margin compression, driven by a combination of factors such as fluctuating interest rates, rising construction material costs, increasing labor expenses, and escalating insurance premiums. This challenging landscape necessitates a fundamental reassessment of traditional practices and a proactive embrace of innovation to navigate the complexities ahead.