Savannah Selle
Nonresidential construction spending fell 1.1% in April after an upward spike in March. Recovery remains on hold in a newly sluggish economy. The private commercial market is poised to recover with recent improvements in rental and occupancy rates and lending interest by investors. The value of starts has steadied well above the cyclical low level and design work in progress continues to expand. The market outlook is exactly the opposite for institutional building. Contractors are quickly working off the tail end of the federal stimulus funds and earlier state and local appropriations with little likelihood that public construction funding will be sustained in 2011-12.
Nonresidential building construction spending declined 23.4% in 2010 and may decline a little more this spring before beginning to expand. Spending will drop 7.5% in 2011 and then rise 10.2% in 2012.
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