Features

By Taylor Williams Editor’s note: This article covers the opening session (approximately the first 20 minutes) of the “Real Recession Risk or Temporary Distraction?” webcast. To watch a replay of the entire event and listen to the subsequent conversation, please use the link at the bottom of the page. At least for one week in April, Mark Zandi was to economics what Tony Romo has been to professional football — a broadcaster who sees the play before it happens. As a featured speaker on a Marcus & Millichap webcast titled “Real Recession Risk or Temporary Distraction?” that took place on Monday, April 21, the chief economist for Moody’s Analytics expressed major concerns over the impacts that the Trump administration’s tariffs had on business sentiment and investor confidence. Zandi qualified his analysis by stating unequivocally that while damage had already been done, he expected the administration to take an “off ramp,” and revise its tariff policies. Doing so would be crucial to avoiding further sinking the stock and bond markets and potentially hurting the commercial real estate market too by extension, Zandi said. His prediction, which was made as a market selloff was unfolding — appeared to come true almost instantaneously. …

By Tony Julianelle, CEO, Atlas Real Estate The recent surge of tariffs on imports of goods from a bevy of countries has triggered a new round of economic debates — and for good reason. As the situation unfolds and develops, three questions keep coming up that are especially important for real estate investors, business leaders and homeowners alike: •  Will tariffs significantly raise building costs and home prices, or are these fears overstated? •  Could tariffs genuinely foster economic stability and stimulate American manufacturing and jobs? •  How can the real estate community strategically navigate or even capitalize on these changes? Let’s break it down. Are Higher Building Costs, Home Prices Inevitable? In the short term, it’s hard to ignore the facts: tariffs are taxes, and when imported building materials are taxed, construction costs go up. The National Association of Home Builders estimates that recent tariffs could raise the cost of building a new home by about $9,200 on average. For anyone already feeling the squeeze of high mortgage rates and limited inventory, this is unwelcome news. But it’s important to separate short-term reaction from long-term reality. Tariffs will create localized inflationary pressures, but their magnitude compared to other market forces — land …

By Ray Catlin, Texas regional vice president at LGE Design Build The construction industry is at a critical crossroads, facing an unprecedented labor shortage that threatens to disrupt project timelines, increase costs and impact overall quality. Over the course of  2025, the sector is projected to require an additional 454,000 workers — a gap that continues to widen as seasoned professionals retire faster than new talent enters the field. This labor shortage was first felt during the 2008–2009 financial crisis when the market downturn prompted many experienced workers to retire early or exit the industry entirely. While the industry saw periods of recovery in the years that followed, the COVID-19 pandemic reignited and exacerbated workforce disruptions, accelerating early retirements and prompting many to pursue careers in other sectors. Without proactive solutions, this workforce shortfall could jeopardize the industry’s ability to meet growing demand. Addressing the challenge requires a comprehensive strategy that embraces collaboration, innovation and workforce development. Consequences of a Growing Skills Gap The current labor shortage is driven by a shrinking pipeline of skilled workers. With only 9 percent of the workforce under the age of 25, the industry is struggling to attract younger generations into the trades. The …