Development Outlook Improves for 2014
Commercial construction is expected to strengthen after modest gains in the second half of the year are predicted to continue into 2014. Overall nonresidential construction spending is forecast to rise 7.6 percent next year, according to the American Institute of Architects’ Construction Consensus Forecast.
The hospitality and retail sectors are poised to experience the most growth in 2014. Spending on hotel construction jumped nearly 20.0 percent in 1H13 with an additional 15.0 percent expected next year. Retail projects will see an 11.7 percent rise in spending next year, up from 8.2 percent in 2013.
Optimism for a stronger performance next year is based on the recent increase in domestic energy production, the boost to the general economy from a resurgent housing market, and improving employment figures,” says Kermit Baker, AIA chief economist.
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