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IMC: Philly Construction Update

Since the recession rebound, vendor manpower, capacity and availability have become an increasing concern. IMC Construction CEO Rob Cottone (here with wife Trish at IMC’s 40th anniversary holiday gala at the King of Prussia Mall Connector Project) feels that, in time, the market will reach equilibrium, since there is such high demand right now while vendor supply is lower. Rob predicts that rates are going to increase, and as a result, more people are going to return back or enter into the industry. Rob also sees the next two years being a rosy picture for construction and real estate in the Mid-Atlantic region. Philly, however, is lacking consistent, year-after-year growth, compared to New York and DC. Multifamily is extremely prevalent in terms of the number of units proposed and under construction, but Rob believes a bubble is happening: too much product being put on line, too quickly. Right now, an approximate $400M backlog is going to happen over the next two years. Construction is a lagging economic indicator, particularly commercial construction. It takes a good year or two to build many of the larger projects. Rob, who started at IMC as a project manager, says the company views itself in a consulting capacity, while managing building projects and addressing pain points. For more information on our Bisnow partner, click here.

This content originally appeared in Bisnow.

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