Survey Reveals How Contractors Are Bracing for What’s Next

It feels like déjà vu for real estate developers—reminiscent of 2020, or even the uncertainty of 2008. The typically stable world of commercial real estate has been completely upended, and we’re now grappling with a host of complex and impactful variables:

• Tariffs driving up hard costs
• The possibility of a recession, potentially lowering interest rates
• Inflation which could lead to rising interest rates

As we navigate these challenges, the big question for developers remains: When the dust settles what will the demand be for what we build? Will there be a prolonged period of uncertainty?

We’re doing our best to analyze these factors, and as developers of ground up self storage facilities year after year, we’re acutely aware of how hard cost fluctuations impact our investor returns. While we’ve seen overall hard costs decrease since 2023, the looming threat of material tariffs and shortages raises the concern that costs will climb.

To better understand the trajectory of hard costs, we conducted a survey with our top 12 general contractors, who are located across the U.S., providing us with a comprehensive view of the market. We specifically requested input from the owners or presidents of these companies to gain a high-level, macro perspective. The results of this survey might surprise you—or perhaps not.

By publishing this information, our goal is for you to use this as you make investment decisions moving forward. As we say, the more information you have, the better you are positioned to make decisions that matter.

-Drew

Click to Download a PDF of the Report