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.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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