Dive Brief:
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Billion-dollar construction projects create thousands of jobs in the industry and related fields, but they also cause problems for local developers who are not involved in the building.
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Douglas Linde, president of Boston Properties, told investors that because developers of mega-projects are willing to pay whatever it takes for materials and labor, they drive up costs and leave scarce resources for everyone else.
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The phenomenon is exacerbated, he said, by a nationwide shortage of construction labor, which has driven up the costs of recruiting, wages, and employee benefits.
Dive Insight:
The comments were reported by The Washington Business Journal, which is following the progress of the $1.2 billion MGM National Harbor resort in the DC suburb of Fort Washington, MD. During its two-year construction, the resort is expected to create thousands of industry jobs and toss plenty of business to small, local companies.