{"id":1004462587,"date":"2020-07-13T05:32:57","date_gmt":"2020-07-13T13:32:57","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004462587"},"modified":"2020-07-15T10:09:58","modified_gmt":"2020-07-15T18:09:58","slug":"construction-costs-decrease-for-the-1st-time-in-a-decade","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/construction-costs-decrease-for-the-1st-time-in-a-decade\/","title":{"rendered":"Construction Costs Decrease for the 1st Time in a Decade"},"content":{"rendered":"
\"\"<\/a>

Image via Pixabay.com<\/em><\/p><\/div>\n

Commercial construction costs dipped in the second quarter, declining for the first time in a decade, according to Turner Construction Co.\u2019s quarterly Building Cost Index<\/a>.<\/p>\n

\n

READ ALSO<\/strong>: Construction Slump Likely to Linger<\/a><\/p>\n

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The index measures costs in the U.S. nonresidential building construction market. It decreased to 1177, representing a 1 percent reduction from the first quarter. This is the first time Turner\u2019s projected quarterly BCI adjustment has fallen since the second quarter of 2010.<\/p>\n

Turner Construction Vice President Attilio Rivetti who compiled the BCI, said in a prepared statement that competition among trade contractors has increased in many markets, as contractors try to nail down work amid uncertainty about future opportunities.<\/p>\n

He added that the third quarter will likely \u201cmore clearly define the fluctuation of escalation of cost in the construction industry<\/em>.\u201d On its own, this data point might be encouraging for commercial real estate developers, but in a wider context it could generate more confusion than optimism.<\/p>\n

Signal\u2014or noise?<\/h2>\n

Recent pandemic-driven reports from multiple entities have tried to make sense of a rapidly evolving situation, and this outlook from Turner Construction bucks the trend.<\/p>\n

In late March, a special report from the American Institute of Architects found that about two-thirds of architecture firms surveyed had already seen prospective projects slow or stop. The group\u2019s chief economist told Commercial Property Executive<\/em><\/a> that construction would probably fall through the second half of 2020, and into 2021.<\/p>\n

The following month, a report from Marcus & Millichap\u2014part of a series of reports on commercial real estate in the pandemic\u2014predicted a possible rise in construction costs in tandem with multiple projects being delayed, perhaps indefinitely. Also in April, Gordian predicted that construction costs<\/a>, which had risen nationally by 2 percent in 2019, would increase further this year, driven by labor and materials costs, and, to a lesser extent, tariffs.<\/p>\n","protected":false},"excerpt":{"rendered":"

The COVID-19 pandemic and increased competition among contractors are key factors behind the decline. <\/p>\n","protected":false},"author":882,"featured_media":1004462722,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,45527,23891,21742],"tags":[48950,34836,33378,33850],"class_list":["post-1004462587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-keyword-optimized","category-national","category-latest","tag-coronavirus","tag-marcus-millichap","tag-the-american-institute-of-architects","tag-turner-construction-company"],"acf":[],"yoast_head":"\nConstruction Costs Decrease for the 1st Time in a Decade - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/construction-costs-decrease-for-the-1st-time-in-a-decade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction Costs Decrease for the 1st Time in a Decade\" \/>\n<meta property=\"og:description\" content=\"The COVID-19 pandemic and increased competition among contractors are key factors behind the decline.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/construction-costs-decrease-for-the-1st-time-in-a-decade\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-13T13:32:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-15T18:09:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/07\/construction.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/construction-costs-decrease-for-the-1st-time-in-a-decade\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/construction-costs-decrease-for-the-1st-time-in-a-decade\/\",\"name\":\"Construction Costs Decrease for the 1st Time in a Decade - 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