Tuesday, July 22, 2014

Texas tops country in commercial building

Texas is leading the country in the rebound of commercial building activity.

But developers have a long way to go to get back to where construction totals were before the recession, according to a new report by the National Association of Industrial and Office Parks.

The NAIOP study found that hard costs for construction of projects including office, warehouse and retail buildings totaled $61.6 billion nationwide last year – up 25.2 percent from 2012.

But that’s still significantly below the $89.2 billion of commercial building in 2007 before the recession hit.
Texas is the top market for most types of commercial construction, including office, warehouse and retail.
Last year there was almost $5.8 billion in nonresidential building across the state, according to the NAIOP. 

The largest share was office construction at $2.7 billion, followed by retail, $1.6 billion, and warehouse, $1.1 billion.

Nonresidential building across the country is projected to increase through the next three years.

“Going forward, the U.S. economy cannot achieve a sustained expansion in the absence of the construction industry’s full recovery, which currently is projected to be achieved in 2017,” according to the report.

Steve Brown- Dallas News