Source: mercurynews.com | Re-Post MNM Partners, LLC 4/29/2019 –
The Bay Area is the most expensive place in the world to build an apartment building, office tower, hospital, warehouse or school. And it’s not even close — the region is 13 percent more costly to develop than second-place New York, according to a new report by UK-based consultant Turner & Townsend.
“Another dubious award for the Bay Area,” said Russell Hancock, CEO of the non-partisan, regional think-tank Joint Venture Silicon Valley.
The report blamed high costs on a combustible mixture of high demand, labor shortages, steel tariffs and rapid economic growth.
Even as the expanding Bay Area economy demands more homes, offices, roads and transit projects, rising costs could threaten development, forcing project delays or changes in size and scope.