Commercial Properties Projected to Rise 17% in 2014
Last year, 2013, was a stellar year in the new construction and real estate market in general for most of the country. We had a higher real estate sales year last year than in the past five years combined practically. According to local and regional economists, the construction forecast is good for 2014. Where already halfway through the year and commercial property activity is up anywhere from 12 to 17%. "The Architecture Billings Index produced by the American Institute of architects continue to accelerate last year reaching its highest level since February and the second-highest mark of the year in 2013."
The projected a 17% gain in commercial construction which was slightly higher than projected last year at 15%. However, it still is slightly below the 2007 peak which was at 28%.
Banks aren't lending more and construction activity is up across the board. Lending standards and the volume of loans in the improving fiscal posture of states and localities will help to offset some of the negative impact from decreased federal funding. This according to Robert Murray, McGraw Hill construction's vice president of economic affairs. The lead time between design firm and hard construction spending is about 9 to 12 months.
"Multifamily housing, accounted for separately from commercial construction, is projected to rise 11% in dollars and 9% in units in 2014. Apartment and condominium percentage gains will be smaller than the previous four years, reflecting the completed recovery and maturing market." [Source]
We are seeing a vast number of commercial projects already being implemented around the Minot North Dakota area including new subdivisions, major developments, commercial construction and residential suburbs.
Now would be the ideal time to consider getting in on the ground floor for new construction or before prices rise to much more in 2014.