CREJ

R egardless of political lean- ings, American companies are girding for a rough ride if the tariff situation bleeds into the new year. After some 17 months, theTrump administration’s cat-and-mouse trade war with China shows few signs of resolution before another round of tariffs was scheduled to take effect Dec. 15. Many believe it still is too early to measure the wider impact on the economy. Others have been profoundly affected already.What seems to be clear is that a primary driver of pricing volatility just may be uncertainty itself.This most surely applies to the office building market and the design and con- struction industry that supports it. “Even the threat of the tariff effect has made people very jumpy,” said Mark Stratton, president of Denver-based Coda Construction, a commercial tenant finish firm. “Obvi- ously, nobody knows what’s going to happen in the near future, but people have to protect their interests. It’s just too volatile not to.” The tariff story in practical applica- tion began last March when the U.S. imposed global duties on aluminum and steel with President Donald Trump stating that the move was intended to protect the country’s eco- nomic and security interests. Quickly thereafter, Trump offered some relief to a number of targeted nations, but China was not one of them. More tariffs since that time have impacted price points on hundreds of construc- tion materials as well as mechanical, electrical and plumbing components, floor and wall panels, textiles, cabine- try, tiles, glass blocks – the essentials that drive the construction industry, Please see Page 17 December 2019 INSIDE Destination: Denver PAGE 4 Demand in Golden PAGE 14 Tech migration trends PAGES 11-13 The city must position itself in order to continue to attract large corporate users. Office developers should consider Golden for new projects because there’s strong interest. Articles highlight how the tech industry is impacting Denver and how to maintain it. Kim Hoff Design director, Kieding How tariffs may stunt construction & leasing Kieding U.S. tariffs have impacted price points on hundreds of construction materials and finished goods in the office and building amenity areas, including furniture, flooring, wallcover- ing, textiles and lighting components. Even consumer electronics may be affected if scheduled tariffs are imposed in mid-December.