Construction Remains Strong

Decreasing vacancy rates and infrastructure improvements will continue to drive North American construction, according to economists who recently made presentations at CMD Group's North American Construction Forecast for design and construction professionals, www.nacf.com.With the national vacancy rate for downtown office buildings at just 6.

12/01/2000


Decreasing vacancy rates and infrastructure improvements will continue to drive North American construction, according to economists who recently made presentations at CMD Group's North American Construction Forecast for design and construction professionals, www.nacf.com.

With the national vacancy rate for downtown office buildings at just 6.7 percent, and the rate for industrial properties down to 6.5 percent, Hugh Kelly, chief economist with Landauer Associates, Inc., New York, pointed out that most industrial real estate transactions are occurring in the 20,000- to 100,000-square-foot range. Similarly, most retail sector activity is centered around areas of less than 75,000 square feet.

"While most institutional investors are still buying big spaces, the greatest number of [industrial] deals are in this [smaller] range," said Kelly. "It's a hotbed of private owners, involved in just-in-time delivery requiring smaller warehousing spaces."

Kelly also linked infrastructure investments to real estate activity in the distribution and storage sector, predicting that port improvements in New York and Oakland will increase warehouse spacing demand in those cities. Similarly, said Kelly, highway improvements will have the same effect on industrial real estate activity in some regional hub cities.

Overall, North American construction is projected to post a 1.3-percent increase in 2000, a 1.9-percent decrease in 2001 and resumed growth of 1.3-percent in 2002, according to Bill Toal, chief economist with the Portland Cement Association, Skokie, Ill.

Ray Torto, the principal and managing director for Torto Wheaton Research, Boston, concurred that in the next couple of years, construction will remain strong.

"Construction will heat up, returning to the level of the 1980s," Torto noted. "Construction loans are really picking up and are already back to their previous highs."





Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Boiler basics; 2017 Product of the Year winners; Manufacturing facilities Q&A; Building integration; Piping and pumping systems
2017 MEP Giants; Mergers and acquisitions report; ASHRAE 62.1; LEED v4 updates and tips; Understanding overcurrent protection
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
Power system design for high-performance buildings; mitigating arc flash hazards
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me