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Weekly Insights
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Value of CRE Construction Put In Place Seasonally Adjusted Annual Rate
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May 12, 2008
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The value of private commercial real estate construction put in place
(office, warehouse and manufacturing, retail, multi-family and lodging)
is just beginning to level out, a sign that lenders and developers have
turned cautious and user demand is softening. Retail construction began
correcting about a year ago, while lodging construction is still going
strong. Expect construction activity to pull back this year, although
the pipeline will continue to deliver space started prior to the credit
squeeze, which will push vacancy rates modestly higher for all property
categories by year-end.
Source: U.S. Census Bureau, Grubb & Ellis
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Robert Bach, Senior Vice President, Chief Economist, has 30 years of professional
experience in real estate market research, consulting and city planning. His commentary
on the real estate markets is provided here on a weekly basis.
Need more information? Contact:
Robert Bach
Senior Vice President, Chief Economist
312.698.6754
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