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NAIOP Survey Reports Shortage of Construction Supplies Amid Improving Business Conditions
Even as business conditions have improved for commercial real estate, 86.6% of developers in NAIOP’S latest COVID-19 impact survey now report delays or shortages in construction supplies — a new high since the survey began in April 2020. This suggests that supply chain disruptions may outlast other effects of the pandemic, increasing construction costs and slowing new development.
The percentage of respondents reporting deal activity has more than doubled for office and retail over the last year. It has also increased substantially for industrial (92.2% vs. 71.2% in June 2020) and multifamily (76% vs. 58.6%).
“The materials and supply chain issues are lagging effects of the pandemic, and they are affecting every industry,” said NAIOP president and CEO Thomas J. Bisacquino. “While the pandemic’s impact was deep, there’s a sense of optimism among NAIOP members, with deal activity rising and an increase in people returning to offices, restaurants and retailers.”
- ◦Development
- ◦Economy
