Construction Costs: What Are You Seeing?
Costs have obviously been sky high for a while now. Between a tight market for subs and the increased cost of materials due to tariffs, it’s been hard to make deals pencil. I work in the Bay Area and it’s been insane. 

I’ve *finally* started to hear anecdotal stories about slightly lower costs. How are you underwriting your deals right now? 

Developers: are you seeing lower pricing from GCs? 

Posting this independent of the Covid predictions thread because I thought people here may want to share what they’re seeing, as this sub seems to be getting better in terms of not being flippers/get rich quick folks and more geared toward people working in the industry.
[{"id": "fz4xcss", "text": "As of right now, contractors are maintaining their pricing for the most part. I expect that in the next 30 - 60 days the pipelines will substantially dry up and the availability will begin to show solid savings. \n\nLocated in Secondary Market. Office and Industrial.", "replies": [], "depth": 1}, {"id": "fz4y797", "text": "We have seen a slight uptick but nothing crazy. What type of construction? Multi family? Warehouse? Office? Those numbers all vary greatly.", "replies": [{"id": "fz4ymdk", "text": "I\u2019m most interested in multifamily but thinking there are posters on here working in multiple asset classes.", "replies": [{"id": "fz4zmw3", "text": "Gotcha. Just wanted to see if I could be more specific. Our labor costs have remained pretty flat but over the past two years we have had materials go up with suppliers adjusting prices due to tarriffs and such although many of the prices went up before it ever cost them a dime more than normal lol but for a class A multi family high rise (375 units), our construction costs just came in at ~$400/sf which is up slightly but nothing crazy. Our cost for projects in the 50 and lower unit range has jumped from roughly $185/sf to $200/sf", "replies": [{"id": "fz5hjru", "text": "Where?", "replies": [{"id": "fz5i5jd", "text": "Philadelphia, Pittsburgh, Newark (NJ)", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fz50vho", "text": "In office and industrial for third party Property Mgmt in the Bay Area (680, Oakland, North Bay). We have an in house GC so we see both sides. Pricing from the subs is starting the lower a touch, but not a ton. There\u2019s still a lot of demand because owners who have money are doing a shit load of work without Tenants nearby.", "replies": [], "depth": 1}, {"id": "fz5d75s", "text": "Just finished 2500 SF renovation Of medical space with high end finishes and plumbing for $65/SF in FL", "replies": [], "depth": 1}, {"id": "fz5dkmy", "text": "I'm in Eugene Oregon. \nI run a residential property management company and we do single family development.  We're working on our first multifamily right now. What I've seen is prices is the labor is coming down a bit because a lot of people are pausing their jobs are not pulling the trigger so some of these companies have lost some of their pipeline. \n\nHas an example our drywaller we ended up cutting our costs by almost 20% of labor because he lost some big jobs and so he needed to fill his time.", "replies": [], "depth": 1}, {"id": "fz5drcc", "text": "We\u2019ve seen some pricing drops but nothing massive yet. We think more is coming in the oct-dec timeframe as backlog burns off.", "replies": [], "depth": 1}, {"id": "fz6zlu5", "text": "Broker, tertiary market, Southeast. Developer clients (all product types) have seen basically no cost relief so far this year, as others have said, this *should* change in late Q3/Q4, but I don't think anyone is taking it as a given.", "replies": [], "depth": 1}]