Navigating Tariffs in Real Estate Development

Our team works with clients to: 

• Accelerate specifications from consultants for materials and equipment. 
• Identify long lead-time items and recommend alternate specs and sourcing. 
• Release long-lead materials and equipment early. 
• Create phasing strategy to allow construction to proceed around delayed items; accommodate in the logistics plan. 
• Leverage PDS relationships to expedite authorities having jurisdiction (AHJ) plan reviews and issuance of project permits.

Our team works with clients to: 

• Build budgets that accurately represent scope of work, with reasonable escalation and potential tariff impacts. 
• Creatively source materials via a competitive procurement process. 
• Require trade contractors to hold proposed pricing. 
• Use contract structures to cap late change requests, which can subject clients to greater pricing fluctuations. 
• Ensure that force majeure clauses are properly defined and do not allow tariffs to be identified as force majeure item.

Our team works with clients prior to site selection to: 

• Understand project business drivers. 
• Align project and real estate goals with the budget. 
• Provide a level of construction cost certainty and responsibly manage to it, using expertise and helpful contract structures.  
• Offer creative ways to reduce costs while achieving goals. 
• Manage scope, quality, and time.

Our team works with clients to: 

• Understand local market build out costs.  
• Work strategically within landlord funding, ensuring money is being spent efficiently and effectively, and that all changes are appropriate. 
• Ensure the client understands how much of the build out is NOT covered under landlord funding. 
• Support competitive procurement and sourcing, integrating items into the landlord schedule of construction to avoid tenant delays and erosion of free rent.

Our team works with clients to: 

• Source materials where tariffs are lower, or domestically in the U.S., to avoid tariffs. 
• Understand the markets on a hyper-local basis to protect against price gouging (greedflation). 
• Leverage our buying power and platform.  
• Provide real-time feedback on design items that can be adjusted to keep costs aligned with budget. 
• Investigate price increases to see if they are commensurate with actual tariffs.