North Texas Construction Spending Is Way Up
CRE construction spending is up 34% in North Texas from this time last year. That's no thanks to single-family and multifamily construction, which is down by 4% compared to last June.
The stats compiled by Dodge Data & Analytics measure all hard construction costs in Collin, Dallas, Delta, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise counties. Megaprojects such as the $380M Toyota Corporate Campus and the $205M Southwest Airlines Flight Training Center/Office Building account for a large portion of the pie.
Construction cost increases are averaging about 2% nationally, so these numbers are largely a real change in construction activity rather than cost inflation, Dodge forecasting manager Kim Kennedy tells us.
This June, $729M worth of commercial construction was underway in North Texas compared to $543M last June. Year-to-date construction tops $3.2B compared to 2015's $2.5B. The largest increase in sectors comes from office and education projects, Kim says.