Commercial construction may improve by year-end

Commercial property construction should get better later this year.

A report from the American Institute of Architects showed that the construction spending situation for commercial properties should fare better as the year winds down.

Overall, the group explained that there should be a 4.4 percent increase in construction spending for 2012, which could mean that property management companies are looking to expand their portfolios. The initial projection, released in January, was only a jump of 2.1 percent. When looking to 2013, the total gain could be more than 6 percent.

"With companies looking to bring back manufacturing jobs from overseas, there has been a sharp rise in demand for industrial facilities, which is leading to an upward revision in projections for future construction spending," said Kermit Baker, chief economist for AIA.

Construction for warehouses, hotels, offices, retail and industrial facilities should increase by 5.7 percent this year, but next year it will jump to more than 10 percent. However, healthcare, education, public safety, education and amusement facilities are expected to have a growth rate of less than 1 percent this year, and only 3 percent next year.

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