Market witnesses slow improvement for new construction

New construction has had slow growth nationwide.

Globe Street recently reported that the American commercial real estate market has not witnessed an improved volume of new property construction, despite the present being the prime time for these figures to pick up, and this could be a concern to property management companies.

Typically, after a recession, non-residential commercial development starts to ramp up between the following 18 to 24 months, according to the report. This has not occurred for many reasons, including the fact that hiring is far behind where it needs to be at this juncture. In addition, some industry experts have played down the chances of a quick recovery.

"I'm not buying into the proposition that the nation's construction industry will recover in 2013," said Anirban Basu, chief economist for Associated Builders and Contractors in a news conference, according to the news source. "What we have right now is an utter lack of confidence in the economy, and confidence represents a centrally important requirement for construction spending growth."

However, the news source added that there are some areas of the country that have experienced improved construction. These major markets could help lead the way to commercial construction recovery.

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