Construction Costs to ‘Go Up Radically,’ Prologis CEO Says

(Bloomberg) – Prologis Inc., a real estate investment partnership with and operating warehouses, said that the US migration policy causes a labor force shortage that increases building costs.

“Construction costs will rise radically,” he said on Wednesday, Hamid Moghadam, CEO of Prologis. “We thought they would be balanced this year, but I think all these immigration works are putting more pressure on construction.”

According to government figures analyzed by Bloomberg, President Donald Trump promised to undertake the largest deportation campaign in American history. The White House gave 3,000 arrest quotas a day on ice.

“This is a real issue for our customers, because people need to work in their warehouses, and they are often the same people with immigration problems. “So they are forced to automation, which is not economical at this point.”

Moghadam added that “employees do not know where to come from, they will make all this production,” he added.

CEO said that labor shortage makes Prologis’s buildings more valuable because it would cost more expensive.

According to Steve Sakwa from Evercore Heat, the shares of the San Francisco -based company rose to 1.4% on Wednesday after reporting the second quarter of the second quarter after the focus on tariffs.

Prologis’s funds from operations – a cash measure produced by a GYO – exceeded the expectations of analysts, and the occupancy rates remained constant by approximately 95%.

-Romain Bostick and Scarlet Fu help.

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