Market News

Commercial Construction on an Upswing



NEW YORK -- May 12, 2005 -- Planned construction has risen considerably in recent months for every major property type except warehouses, according to Boston research firm Property Portfolio Research.


Rental properties led all categories with a 49 percent planned increase in construction to 154,097 units from November to April; followed by a 23 percent increase for retail space to 275.1 million square feet; and a 12 percent increase in office space to 222.9 million sq. ft. At the same time, planned construction for warehouse space declined 17 percent.


Apartment markets in the Washington, D.C., and Charlotte, N.C., areas had the most amount of space over the past six months.


The report also says that the office markets of Nashville, Tenn., and Sacramento, Calif., are at risk of being overbuilt; the office and apartment markets of Palm Beach County, Fla., are at risk of too much construction; and the apartment, retail and warehouse markets of California's Inland Empire face similar concerns.


Source: The Wall Street Journal (05/11/05) P. B4; Smith, Ray A.


Copyright 2005 INFORMATION, INC. Bethesda, MD (301) 215-4688


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