According to American Institute of Architects, despite labor shortages and rising material costs that continue to impact the construction sector, construction spending for nonresidential buildings in the U.S. is projected to increase 4% this year and continue at that pace of growth through 2019.
The American Institute of Architects semi-annual Consensus Construction Forecast indicates the commercial construction sectors will generate much of the expected gains this year, and by 2019 the industrial and institutional sectors will dominate the projected construction growth.
"Rebuilding after the record-breaking losses from natural disasters last year, the recently enacted tax reform bill, and the prospects of an infrastructure package are expected to provide opportunities for even more robust levels of activity within the industry," said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. "The Architecture Billings Index (ABI) and other major leading indicators for the industry also point to an upturn in construction activity over the coming year."
This week Amazon announced their final selection for the location of their second headquarters. In a change to the original plan, Amazon decided to split the location of their new headquarters between two cities choosing New York and Northern Virginia.
According to CBRE's Q3 2018 Manhattan retail market report, New York City retail rents continued to drop during the third quarter, but forecasters are optimistic for the impending holiday shopping season.