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 …

By Candise Shanbron, Esq., managing partner at Cernitz Law No matter where owners of commercial properties stand politically or how they feel about issues like climate change, one undeniable fact is that natural disasters are becoming increasingly common. In high-risk geographical areas, such as coastal regions and areas that are prone to wildfires, hurricanes, tornadoes and floods, these disasters are happening with greater frequency and intensity. As these events grow more widespread, the conversation surrounding commercial property insurance and risk mitigation has become a central issue. Whether it’s a single building or a large portfolio, understanding the evolving landscape of risk and property management and insurance is important for owners’ long-term success. Although not related to a natural disaster, it’s worth noting that in the aftermath of the 2021 Champlain Towers South condominium collapse in Surfside, Fla., the state quickly imposed stricter recertification guidelines, such as a 30-year inspection mandate (dictated by the county), with follow-up inspections on shorter time frames. This new mandate has placed an unexpected financial burden on individual condo owners, who now face hefty assessments they did not anticipate when they first purchased their units. Across high-risk markets like Florida, California and other disaster-prone regions, property …

By Faizan Zaidi, director of design technology, Spectorgroup As the commercial real estate market cycles through periods of challenge, savvy owners and investors can leverage advanced technologies to position themselves for growth and mitigate future risks. Commercial real estate services giant CBRE is predicting a moderate recovery in investment activity throughout 2025, following a near 50 percent drop in office sector valuations in April of 2024, according to data from California-based management firm A Street Partners. As such, the volatility of today’s landscape underscores the importance of long-term strategic planning to navigate shifting market conditions, mitigate risk and position assets for growth. Today, major advances in technology are helping to streamline project timelines while enhancing decision-making, thus equipping decision-makers with the tools to navigate the ever-evolving building landscape more effectively. With regard to project deliveries over the past decade, the industry has seen a major shift in key areas of focus. Whereas firms and clients alike were previously concerned primarily with speed of execution and the delivery of the final product, collaborators today are asking how projects are delivered, emphasizing cost-efficiency and the use of proper digital tools. As clients become more discerning, firms must adapt and incorporate more advanced …