Philadelphia real estate developers are bracing for the impact of the Trump administration’s tariffs, which look certain to drive up costs and potentially derail some projects, writes Paul Schwedelson for the Philadelphia Business Journal.
According to Mo Rushdy, managing partner of the Riverwards Group and president of the Building Industry Association of Philadelphia, costs are expected to rise most for developers of mid-rise multifamily projects with steel foundations and have podiums at their base. Aluminum tariffs could affect the price of electrical products and curtain walls on new construction buildings.
“Simply put, it’s just going to kill projects,” said Rushdy.
Several development projects in Philadelphia have been put on hold since 2023 due to high interest rates and rising construction costs. Now, the tariffs add another layer of uncertainty, especially if implemented quickly.
Parkway Corp. is expected to complete an 18-story tower for Chubb in 2026, but the developer is currently pondering its next moves, as it sourced its steel from Canada in the past.
“This out-of-nowhere jump in the costs is going to set back any new development even further,” said Parkway CEO Rob Zuritsky. “ It was already very challenging to do developments.”
Read more about the effect of the tariffs may have on Philadelphia projects in the Philadelphia Business Journal.
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