March Newsletter

By Jesse Etherington

Since the start of the year, steel and aluminum prices have climbed, with steel up 15–25% and aluminum 8–10%. The construction industry is now watching closely as new tariffs on materials imported from Canada and Mexico are set to take effect on April 2. These tariffs, which could layer on top of existing ones, may drive prices even higher, potentially creating a 50% tariff on some steel and aluminum goods according to Construction Dive.

While the ultimate scope and rate of the tariffs is still uncertain, just the threat of new trade actions has already caused concern among stakeholders, particularly when it comes to materials like reinforcing and structural steel, aluminum curtainwalls, and Canadian lumber (up 10–15% already in anticipation).

In an interview with Construction Dive, Skanska USA Building’s EVP of Project Planning noted that while timelines are unlikely to be affected in the short term, project costs and budgets will feel the pressure, especially given lingering post-pandemic cost escalations.

Takeaway for Owners & Investors:
Contractors are working to minimize exposure through smarter material sourcing, tighter budget planning, and ongoing communication with clients. Strategic supply chain visibility and early conversations about project specifications will be key to reducing risk in the face of evolving tariffs.

Let us know if you’d like to discuss how this may affect your current or upcoming projects.

Occupied senior living renovations require more than just construction expertise, they require empathy, communication, and a deep understanding of the residents who call the space home. Our superintendent shared what made this project both meaningful and successful:

“Working in an occupied senior living community comes with its nuances. You want to be efficient and effective, but also deeply aware of your surroundings. You’re stepping into someone’s personal space, and that requires care and respect. We developed a process that kept residents’ best interests at the forefront. What made it so rewarding was not just completing the work, but also getting to know the residents; building trust, supporting them, and helping them feel at peace while their rooms were being updated. We were intentional about minimizing the disruption by being compassionate and present, and that made all the difference.”

This kind of work goes beyond a checklist, it’s about creating a positive experience for the people impacted most. We’re proud of our team for not only delivering a high-quality renovation, but doing so with heart.

Creative Incentive Structures for Developers

With higher construction costs and interest rates, developers are increasingly leaning on creative incentive structures to make hotel and multifamily projects pencil. Cities and municipalities have more tools than many realize (if you know how to ask).

Some of the most effective incentives we’re seeing across the Midwest right now include:

• TIF (Tax Increment Financing) – Use the increased property tax value your project creates to help fund sitework, infrastructure, or even cover a financing gap.

• Hotel Tax Rebates – Many municipalities will rebate a portion of the hotel/motel occupancy tax generated by your project to help with cash flow in the early years.

• Opportunity Zones – For qualified projects, these offer significant tax deferrals and long-term capital gains exclusions, especially when paired with local support.

• Urban Revitalization Plans – These often come with property tax abatements, permitting support, and fast-track zoning approvals for developments in targeted areas.

• Maximum Assessed Value Agreements – You can negotiate a cap on how much your property will be assessed for tax purposes—locking in predictable and significantly reduced annual taxes for years to come.

Some developers are layering multiple incentives together to reduce upfront equity, lower operating expenses, and increase returns. Whether you’re exploring a hotel, multifamily, or mixed-use concept, bringing in the right team early who knows how to structure deals with cities can be the difference between a stalled project and a groundbreaking.

If you’re working on a project and want to explore how these incentives can be utilized, we’re happy to walk through it with you.

Jesse Etherington

(641) 257-9286