Mainebiz

W W W. M A I N E B I Z . B I Z 25 A P R I L 1 5 , 2 0 1 9 F O C U S R E A L E S TAT E / C O N S T R U C T I O N / D E S I G N T he requests for proposals are out for the Szanton Co.'s Portland Bayside mixed-use develop- ment project. at's usually a heady time in the development process — a big step forward after years of planning. But company president Nathan Szanton is nervous. e huge rise in the past couple of years in construction costs mean that bids may come in higher than what the project can bear. "ere are a lot of sleepless nights waiting for bids to come in," he says. Szanton has been in business for more than two decades. "I've never seen construction costs change as fast as I have in the last year or two," he says. Szanton Co.'s residential projects include a mix of market-rate and affordable units, and there is little wiggle room to increase rents as con- struction costs rise. If bids come in too high, "e project would probably not go forward, and all the work we've put in would probably go down the drain," Szanton says. Szanton isn't the only one having sleepless nights. e high cost of con- struction in Maine is affecting develop- ment projects big and small. Factors include the strong economy and demand for new real estate, a short- age of skilled labor and tariffs on steel and aluminum, which have driven steel prices up 20% and aluminum up 6%. As the price tag on projects changes almost daily, developers, construction companies and contractors are finding ways to cope. "Any contractor you talk to is going to say they're severely impacted by price pressure," says Scott Tompkins, Cianbro director of business development. The large construction manager Pittsfield-based Cianbro, Maine's larg- est construction firm, has a big 2019 ahead. It broke ground last month on a 179,000-square-foot Maine Veterans' KW Commercial, a division of Keller Williams Realty kwmainecommercial.com (207) 879-9800 KW Commercial Maine has a team of 13 brokers dedicated to serving your commercial real estate needs. Our commercial team consists of the most knowledgeable, results-driven brokers backed by years of experience and the most innovative technology the commercial real estate industry has to offer. We specialize in an array of commercial property types, including retail, office, industrial, multi-family, hospitality, and land. When you work with a KW Commercial broker, you're working with a team that has local expertise and global resources. Your Local Experts Sensible Solutions 207.989.4824 www.cesincusa.com Make sure all the pieces stack up. At CES we believe that quality service, responsiveness, and expertise are key to developing success. C O N T I N U E D O N F O L L OW I N G PA G E » I've never seen construction costs change as fast as I have in the last year or two. — Nathan Szanton Szanton Co.

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