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The Wall Street Journal reported a stronger American dollar by 4.3% since the November 8^th election, but what does this mean for permit expediting as well as the retailer/tenant? At first glance this is good news as a stronger currency indicates a strengthening economy; but, for those looking to develop under these conditions it presents a mixed bag of benefits and costs with respect to the permit process of commercial development. As we look into the ramifications of a strengthening dollar we see a weaker import of foreign investment of products and development as well as H1B’s becoming less important. Additionally, we need to be realistic as to the cause of the US dollar becoming stronger with respect to US politics which implies less regulation on businesses and banking institutions. With this decreased regulation comes an influx of new domestic brands and developers looking to try their hand in the market.

Let’s focus on the significance of less foreign money in the US market for a second so we can understand the implications on permit expediting. The transition from having an American dollar that was weaker than the euro or yen into one that is stronger means companies from those countries are losing money. This means less foreign development will occur as high risk endeavors are now riskier than before. Along with this decrease is the decreased need for H1B work visas, which means even Chinese money and development could slow down. It’s a mixed bag depending on what side of the exchange you are on. If you’re a domestic developer waiting for your chance at the market this upswing presents a big fat green light, while those acting as the face for foreign backed companies are looking at ways to reduce the losses incurred.

Part of the strengthening dollar since November 8^th is the politics behind the transition which is based on president-elect Donald Trump’s outspoken stance on less regulation on businesses and banking institutions. Rumors of Dodd-Frank being repealed or altered to allow for less strict regulations is causing some pre-emptive actions by enterprises and bankers that are allowing for a stronger currency. Whether any action will be taken by a Trump administration is yet to be seen, however the chain reaction of effects towards real estate development is being felt immediately. Lenders have adopted skittish practices in light of new Dodd-Frank regulations which has been hard for smaller developers. Additionally, with less Dodd-Frank regulation new banks may be chartered in the coming years allowing for more small developments than before. While this article is not to evaluate Dodd-Frank it is wise to acknowledge the affect the regulations has had on development in recent years.

With less foreign investment in the domestic development and more banks lending money to smaller shops comes more brands trying their hand in the market. What does this mean for getting permits? It means the market is flooded so lines at city hall are going to be longer, less experienced project managers, and larger fees for expediting plans. The needs for skilled and experienced project managers with established relationships in different regions are going to be essential to success for projects. Like anywhere else in life, it’s about leveraging what you know with you who you know.

When looking at the different factors that come in to play as the American dollar grows stronger it’s important to know what the key takeaways are for permit expediting as you can’t build without the permits. As the dollar grows stronger it grows stronger for all Americans which means the consumer wins, and it also means increased competition for businesses. The need for skilled and experienced permit expediting project managers is intensified. The recession was the crucible by which strong innovative leaders were tested, and the strengthening dollar is the cornerstone by which those leaders will build their legacies. Call Permit Advisors for a consultation on your next project.

About Permit Advisors: Permit Advisors Inc is a nationwide permit expediting, entitlement, and consulting firm based out of Beverly HIlls, CA. We have established relationships with municipalities nation-wide and implement time as well as cost saving strategies to efficiently complete projects. We provide a project management team to ensure every aspect of the project is given specific attention while maintaining open communication between the jurisdiction, consultants, and our clients. We serve retailers, architects, landlords, tenant coordinators, contractors and franchisees nationwide in the hotel, retail, restaurant, mixed-use, multifamily, entertainment, grocery, and logistical plant development industries. Contact us today for a consultation at www.permitadvisors.com.