November 14, 2021
Real Estate

Commercial Mortgages: Real estate developers have plenty to worry about with the current economy | Business News

This time around, the market seems ready to absorb the tapering, but inflation fears are growing due to surging oil prices and ongoing supply chain issues. Other inflationary concerns circle around increasing wages, spiking commodity prices and unprecedented government infrastructure money flowing into the system at some point.

Locking in costs on new development projects is all but impossible. For apartment and industrial property developers, a major consolation is that rental growth should continue to outpace inflation costs as demand continues to outpace supply.

For owners of other types of real estate, the concerns are different. For office owners, the question is does remote work cause space occupying demand to fall off? This concern was given more life when the COVID-19 delta variant made several large users change their posture and extend remote work indefinitely.

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