Impact of Tariffs on CRE Construction Costs
The fast-changing nature of U.S. trade policy has resulted in significant cost pressure on imports of foreign made materials and products, including many inputs to CRE construction. Several questions have been raised about the potential implications to CRE construction, and this report attempts to quantify those cost impacts. While policy remains in flux, we estimate that current tariff rates (as of September 30, 2025) will result in an increase to construction materials costs by 9% relative to average materials costs in 2024. Total project costs are estimated to rise 4.6%.
What considerations should developers, contractors and end users of CRE be aware of as trade policy shifts and the construction industry evolves?
To explore our insights, click through each interactive question below.
What steps can developers take to underwrite effectively and mitigate cost overruns?
Always engage with a professional project/development management partner. At Cushman & Wakefield, we will:
- Protect your investment by setting a strategic direction, selecting a competent team, and developing a project charter and detailed plan
- Develop a procurement strategy through a global resource network and drive lower cost and lead time exposure to tariffed materials, including seeking out technologies such as prefabricated systems and alternative materials and equipment
- Engage with planning and zoning officials, economic development and utility providers to ensure legal hurdles are overcome
- Establish project controls to help businesses manage capital spend an anticipate liabilities throughout a project’s life cycle