The value of nonresidential building starts slightly fell in 2015, and was particularly soft in the latter months of the year, according to CMD Research Group.
The total value for nonresidential building stood at $186.307 billion in 2015, down 3.3% from 2014. Starts in December 2015 were 9.4% lower than the same month a year ago, and 7.3% lower than November 2015.
When heavy engineering, such as airport and highway construction, is thrown into the mix, the total value of nonresidential construction starts rose 1.9% to $309.221 billion. But heavy engineering, too, was softer in November and December.
The Industrial sector took the biggest hit last year, as manufacturing-related construction starts fell in value by 32.8% to $12.769 billion. Analysts have posited that manufacturing in the U.S. is suffering, in part, from the steady downturn in China’s economic growth.
The last few months of 2015 were unkind to builders and developers, and pulled down the value of nonresidential construction starts, which ended the year up 1.9%. Nonresidential building starts were off 3.3%. Image courtesy of CMD Research Group.
Commercial construction was on shaky ground, too, as five of the 10 sectors that CMD tracks were negative. Private office building starts were down 32.6% to $11.828 billion, and the “amusement” category fell by 20.4% to $5.413 billion. On a positive note, Alex Carrick CMD’s chief economist, notes that commercial starts were buoyed by retail, which was down by 30.6% in December 2015 vs. December 2015, but still managed to show a positive full-year gain of 7.3% to $18.952 billion.
The wildest swing occurred in the warehouse sector, which cratered by 55.2% in December to December, but nonetheless finished full-year 2015 up 42.7% increase to $10.524 billion.
Schools and colleges accounted for 60% of the Institutional sector’s total starts. However, the category was off 18.7% in December compared to the same month in 2014, and down 4.5% for the full year, to $52.382 billion. The biggest institutional gainer was the police/prison/courthouse category, up 46.3% for the year to $5.664 billion.
CMD also provided a list of the 10 largest projects under construction in the U.S., led by the 40-story, $221 million mixed-use Milennium Tower in Boston. That’s followed by the 69-story commercial building at 401 9th Avenue in New York, whose start value CMD estimates at $317 million.
Related Stories
K-12 Schools | Apr 10, 2024
Surprise, surprise: Students excel in modernized K-12 school buildings
Too many of the nation’s school districts are having to make it work with less-than-ideal educational facilities. But at what cost to student performance and staff satisfaction?
Multifamily Housing | Apr 9, 2024
March reports record gains in multifamily rent growth in 20 months
Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
Retail Centers | Apr 4, 2024
Retail design trends: Consumers are looking for wellness in where they shop
Consumers are making lifestyle choices with wellness in mind, which ignites in them a feeling of purpose and a sense of motivation. That’s the conclusion that the architecture and design firm MG2 draws from a survey of 1,182 U.S. adult consumers the firm conducted last December about retail design and what consumers want in healthier shopping experiences.
Market Data | Apr 1, 2024
Nonresidential construction spending dips 1.0% in February, reaches $1.179 trillion
National nonresidential construction spending declined 1.0% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.179 trillion.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
K-12 Schools | Mar 18, 2024
New study shows connections between K-12 school modernizations, improved test scores, graduation rates
Conducted by Drexel University in conjunction with Perkins Eastman, the research study reveals K-12 school modernizations significantly impact key educational indicators, including test scores, graduation rates, and enrollment over time.
MFPRO+ News | Mar 16, 2024
Multifamily rents stable heading into spring 2024
National asking multifamily rents posted their first increase in over seven months in February. The average U.S. asking rent rose $1 to $1,713 in February 2024, up 0.6% year-over-year.
Market Data | Mar 14, 2024
Download BD+C's March 2024 Market Intelligence Report
U.S. construction spending on buildings-related work rose 1.4% in January, but project teams continue to face headwinds related to inflation, interest rates, and supply chain issues, according to Building Design+Construction's March 2024 Market Intelligence Report (free PDF download).
Contractors | Mar 12, 2024
The average U.S. contractor has 8.1 months worth of construction work in the pipeline, as of February 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023.
Market Data | Mar 6, 2024
Nonresidential construction spending slips 0.4% in January
National nonresidential construction spending decreased 0.4% in January, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.190 trillion.
