Real Estate
Home›Real Estate›Commercial›Soaring diesel and construction material costs force c…
Soaring diesel and construction material costs force commercial project cancellations
Developers across the US are shelving projects as higher fuel and building input costs, along with elevated interest rates, strain budgets and slow deal pipelines.
Developers across the US are scrapping commercial projects as rising diesel prices and higher construction materials break budgets for long-planned developments, according to Bisnow.
The outlet cited examples including Georgia-Pacific abandoning plans announced in 2024 to convert part of its 51-story headquarters building into apartments, retail and entertainment space, canceling its Atlanta conversion project over construction costs.
In Virginia, Bisnow reported that a major redevelopment project is being abandoned after the site owner proposed terminating an approved plan for more than 700 residential units plus retail.
Bisnow also noted that a New York developer shifted away from plans for a luxury residential high-rise in Philadelphia to instead pursue a 34,000-square-foot retail building nearly four years after buying the vacant parcels, with broader pipeline pressure tied to tariffs, higher fuel prices and elevated interest rates.