The new year is going to see an 11% increase in construction for offices, shopping centers, warehouses and hotels, up from the 4% gain estimated in '15, the newly released 2016 Dodge Construction Outlook report says.
"Total construction activity, as measured by the construction starts data, is on track this year to record the strongest annual gain so far in the current expansion," says chief economist for Dodge Data & Analytics Robert Murray.
Office development (as usual) is predicted to be the leader in the upturn, boosted by private development and demand from tech and finance firms.
Although less than 2015's estimate, multifamily construction dollar volume is still expected to jump by 7%. The growth is motivated by low vacancies, rising rents and the demand for apartments by Millennials. [CoStar]
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