2016 Could Signal a Cyclical Peak in Commercial Construction
Aug 25, 2016 | Diana Bell | National Real Estate Investor
Commercial developers have been busy in 2016. Construction starts saw a hearty boost this year, fueled by multifamily, office and lodging sectors. But analysts expect rates of new construction to taper off through 2020.
Private non-residential construction increased 7.0 percent year-over-year, according to research and ratings firm Moody’s Investor Service. Cincinnati-based construction data firm ConstructConnect, formerly CMD Group, meanwhile tabulated year-over-year growth of 8.1 percent across all commercial property types.
Low interest rates here and abroad, coupled with softened global economic conditions, mean foreign investors are increasingly looking to invest in new construction projects in the United States.