Commercial Construction Spending Rises

The National Association of Realtors (NAR) has released its latest research regarding real estate construction. Its stats show some promising results.

According to NAR:

  • Commercial Construction spending was only up 0.1% in March – but this is a 6% gain over last year
  • Private commercial building construction rose by 0.7% in March, with office buildings performing very well
  • Residential construction spending is predicted to increase by 10% to 12% in 2012, and by another 15% to 20% in 2013
  • Commercial construction spending is also due to rise as occupancy rates continue to increase and the economy continues to recover. This should also result in more jobs throughout the construction industry

The only downside NAR pointed out is that construction of religious buildings and amusement/recreational facilities has fallen. The government also slowed its construction spending, according to NAR. These trends are probably due to a decrease in donations, the dissolution of redevelopment agencies (at least in California) and a general tightening of the government’s belt as it deals with budget concerns across the board.

In a way, though, that’s the nature of the commercial real estate beast. Depending on the market cycle, some product types rise to the top while others struggle to sell or maintain tenants. Even in a good market, a few select products will always experience less activity than others. With the current cycle being what it is, however, you can use this data and ProspectNow to locate office and multifamily owners in your area.