While most Americans have experienced an inflation rate of around 3.4% year to date, commercial real estate has not been so lucky.
According to an analysis of U.S. Bureau of Labor Statistics data conducted by the Associated Builders and Contractors (ABC), overall construction input prices are up 7.4% in the past year, while the cost of inputs to nonresidential construction are up 7.2%. Industrial construction costs were down slightly between June and July but were still up 6.9% over the past 12 months.
The price changes between June and July were minimal, mainly because of the drop in the cost of crude petroleum products, which fell 11.9% during that period but were still up 14.6% year over year.
Oil prices, however, have recently been fall...