Daily Real Estate News  |  August 13, 2007  |   Commercial Sector Cushions Fall in Some Cities
Even as the residential property sector continues to slow, the volume of commercial construction is picking up and actually cushioning the fall in such U.S. cities as Houston, Phoenix, and Las Vegas.

According to the latest Census Bureau data, the value of private, nonresidential construction spending soared 17 percent during the month of June to $346.6 billion, led by hotels, educational institutions, office buildings, and utilities.

Greater Phoenix Economic Council President Barry Broome states, "We have unprecedented public infrastructure being built." Commercial developers have been so busy that their biggest problem has been a lack of skilled laborers, including electricians and plumbers who specialize in non-residential jobs.

Uncertainty lingers, though, as it is far from certain if commercial construction will continue to expand at the current rate considering how skittish banks and other lenders are these days of doing any business related to real estate amid an ongoing credit crunch.

Source: Wall Street Journal, Kelly Evans (08/13/07)