Some Atlanta developers' construction projects could be impacted by new tariffs
New tariffs on construction materials are raising building costs, which could eventually slow down development in Georgia.
One local developer told Channel 2′s Bryan Mims how this could affect projects down the road.
Mike Abebe is one of the largest private landowners in Atlanta. He's preparing to develop 25 acres on the Beltline.
Because of his project's timing, he said the new tariffs are not likely to affect him.
'Even if we started construction tomorrow - we'd be doing infrastructure work - something we don't need China to provide,' Abebe said. 'For those on the more predevelopment stage and those under construction - they will be impacted immediately.'
But with other developments across Georgia, tariffs could put stress on the bottom line.
'For a lot of developers, the margins are so thin so for any movement where there's labor and product of course that's going to have impact so they have to renegotiate with the lenders, renegotiate with the equity providers,' Abebe said.
When asked what his advice for other developers is, he said, 'What I suggest to everybody if you're in the concept stage, this is the time to entitle your property, start community emergent you don't have to dig ground to start cost building. Just do the leg work to move forward.'
The price increases will take some time to work their way through the system, so it's unclear how quickly all of this could happen.
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