Commercial construction spending improves in 2012

Multifamily construction levels improved to end the year.

Property management companies experienced a heightened level of construction spending in the commercial real estate industry during December, with much of it involving multifamily properties.

There was a total construction spending rate of $885 billion during December, which was close to 1 percent improved from November’s level of $876 billion, a report from the Department of Commerce noted. This was also nearly 8 percent higher than the same month in 2011.

Residential construction rose to a rate of more than $308 billion during the final month of the year, the report explained. This figure was 2 percent higher than the previous month.

“December’s outlays were motorized by residential construction, of which multifamily construction surged 6.2 percent while single-family construction increased 0.8 percent,” said Eugenio Aleman, senior economist at Wells Fargo Securities, according to MarketWatch.

Total private construction jumped 2 percent, a full 2 percent higher than one month earlier, the report added. Nonresidential construction levels also posted positive figures, as the percent gain was nearly identical to private construction. Overall spending levels surpassed $850 billion for the full 2012 year, more than 9 percent higher than the previous year.

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