Construction Cost Estimates

Come here to talk about topics that are not related to development, or even Kansas City.
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alejandro46
Alameda Tower
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Re: Construction Cost Estimates

Post by alejandro46 »

I discussed w my contractor today. Said KCMO is so crazy backed up with housing permits. 6 month wait. He stockpiled a lot of lumber for our project and his house he’s building. Ended up getting 1000 sqft one bd one br finished for 30k, cabinets and tile extra. Pretty good deal compared to other bids being 20k+.
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chaglang
Bryant Building
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Re: Construction Cost Estimates

Post by chaglang »

Back in early March, over-the-counter commercial permits were able to be scheduled 3-4 days out. Now it' in the 14-17 day range.
flyingember
Mark Twain Tower
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Re: Construction Cost Estimates

Post by flyingember »

Lumber prices dropped a ton in the past month. I took a photo of 2x4s and 2x3s (8 foot) so I could track the price (wasn't buying then)

Home Depot 2x4x8
July 10- $7.77
Website today: $3.98

So it's down almost by half in a month
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FangKC
City Hall
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Re: Construction Cost Estimates

Post by FangKC »

Good to see. I noticed a board on my deck is giving under my foot last week. I need to replace the entire deck floor, but that one reminded me it needs to be done soon. I was hoping prices would come down, but expected it would take a lot longer.
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FangKC
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Re: Construction Cost Estimates

Post by FangKC »

Construction-cost spikes may prompt some developers to consider delaying, canceling projects
...
A recent report by Jones Lang Lasalle Inc. (NYSE: JLL) found, through August, average final construction costs for a commercial project had increased 4.5%. Total cost growth by year-end is likely to surpass 6% and, in 2022, cost increases between 4% to 7% are projected.
...
But once the pandemic backlog catches up, and if construction costs continue to escalate at, say, double-digit percentage increases, projects could start to not pencil out.

"That may begin to become more of an issue going into next year," D'Esposito said.

One of the biggest challenges that has faced general contractors and, as a result, developers and tenants has been trying to predict which material is facing a shortage or pricing issue at any given time. For months in the first half of 2021, lumber was seeing price surges. More recently, pricing has moderated for lumber, but steel has become a bigger headache.
...
Lisa DeNight, national industrial research director at Newmark Group Inc. (NASDAQ: NMRK), said construction costs and shortages are probably the most critical issue facing industrial real estate developers right now. She said, anecdotally, she's heard of some developers canceling or significantly delaying planned projects because they cannot guarantee timing.
...
https://www.bizjournals.com/kansascity/ ... 2021-10-15
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