Commercial Turnaround Likely Next Year
July 22, 2010
Source: Los Angeles Times, Roger Vincent
Vacancies are still increasing in many parts of the U.S. and new commercial construction will be sparse this year, Kermit Baker, chief economist for the American Institute of Architects said Wednesday.
"There are a number of factors at play here that are contributing to one of the steepest construction downturns in generations," said Baker. "We have businesses nervous about expanding their facilities, a fragile financial sector, excess commercial space, and general unease in the international economy."
He predicted that demand for retail, hotels, healthcare, and recreation facilities will result in a turnaround in 2011.