Florida’s real growing real estate bubble might not be ready to burst, but it is in some danger of deflating. A growing lack of construction labor in the state is starting to worry real estate investors and developers. The concern over the increasingly waning labor-force arises from the possibility of increased rates for construction and longer build-out projections. This state-wide decline in construction workers will affect all aspects of the industry, covering commercial and retail, residential and industrial real estate.
Florida has had concerns of construction labor since the state lost a lot of workers due to the real estate downturn in 2008. The shortfall can also be attributed to the growing shift away from construction-based careers for millennials and as more current construction workers enter retirement, the labor-force continues to dwindles.
Tampa may see a noticeable effect on some of it’s large projects in the near future as they are set for development. Large scale Commercial real estate projects such as Strategic Property Partners’ (Tampa Bay Lightning owner Jeff Vinik’s downtown real estate arm) Channelside project and Tampa International Airport’s multi-million dollar will consume large quantities of construction professionals and workforce, as will planned road projects TBX and the Suncoast Parkway projects. Residential and commercial investors may find themselves competing for scarce resources, which will end up driving up costs and delaying progress on their projects. Property managers and landlords will have a harder time satisfying build-out schedules on retail, office and multi-family properties in Hillsborough, Pasco and Pinellas counties.
Despite the State’s increased efforts to promote and secure construction labor, property managers and landlords still fear that the supply is not meeting the demand. With so many new projects in Tampa set to break ground and more coming down the pipe-line, construction firms are vying for every available source of labor. Many, though, are finding it difficult to supply potential workers with satisfactory wages and working conditions. While the shortfall is work-force poses definite concerns, some firms in the area view it as a challenging opportunity to refresh the labor force and adopt a new approach to careers in construction.
