Slight increase in nonres construction spending expected in 2012, growth projected for 2013

Despite the lingering effects of an over-built housing market, the continued difficulty to obtain financing for real estate projects, budget shortfalls at state and municipal governments and the anxiety surrounding the prolonged European debt crisis, there are signs that the U.S. design and construction industry will be improving.

Corporate profits have returned to pre-recession levels and businesses have subsequently been increasing their capital spending, borrowing costs are at record low levels and pent up demand for commercial and retail projects factors into what projects to be a 2.1% rise in spending this year for nonresidential construction projects.

The American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, also projects a 6.4% increase of spending in 2013.

“Spending on hotels, industrial plants and commercial properties are going to set the pace for the construction industry over the next two years,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “The institutional market won’t experience the same growth, but healthcare facilities and places of worship are poised for a positive economic outlook in that sector.”

Market Segment Consensus Growth Forecasts	2012	2013
Overall nonresidential	2.1%	6.4%
Commercial / industrial	5.6%	11.4%
Hotels	10.2%	19.7%
Industrial	6.0%	10.2%
Retail	5.0%	9.9%
Office buildings	4.3%	9.6%
Institutional	-0.1%	3.6%
Religious	5.1%	6.3%
Healthcare facilities	4.5%	5.3%
Amusement / recreation	0.2%	6.5%
Education	-1.7%	3.1%
Public safety	-3.8%	0.3%

Remarking on what could derail a positive turnaround, Baker added, “We are concerned that the unusually high energy costs, given the overall weakness in the economy, might trigger a jolt in inflation and hamstring economic recovery. The housing market also needs prices to stabilize and to resolve the high number of delinquencies and foreclosures before it can fully recover.” BD+C

It’s no accident that the word “Highline” is in this project’s name. The goal is for the building to be a kind of gateway into the larger redevelopment of the surrounding neighborhood to resemble New York’s City’s trendy downtown Meatpacking District, through which runs a portion the High Line elevated park.

Healthcare Facilities | Feb 1, 2015

7 new factors shaping hospital emergency departments

A new generation of highly efficient emergency care facilities is upping the ante on patient care and convenience while helping to reposition hospital systems within their local markets.

Common areas in multifamily buildings, often look more like lobbies found in hotels in the multifamily housing game

Multifamily Housing | Jan 31, 2015

5 intriguing trends to track in the multifamily housing game

Demand for rental apartments and condos hasn’t been this strong in years, and our experts think the multifamily sector still has legs. But you have to know what developers, tenants, and buyers are looking for to have any hope of succeeding in this fast-changing market sector.