Will Commercial Construction Take Off in Late 2011, Early 2012?

When the real estate market crashed for the residential sector most people could not believe the massive devastation in the industry. Others began saying it can only get worse, because if the economy doesn’t get better all those commercial properties will end up in the same boat. Luckily, the economic recovery at least for the corporations has been quite good. Most of the corporations are showing profits, and some of them are showing great profits, thus, they need commercial buildings.
The stock market in the last three years has been stellar, that is ever since March of 2009. This has helped prevent the toppling of the commercial sector. All that needs to happen now is for banks to start funding commercial construction Priorities After Buying A House projects for the future. And I believe that is starting to happen right now. This is also very good news because generally the construction industry is part of any widespread economic recovery from a downward turn in the business cycle.
There was an interesting article recently on this topic in the Wall Street Journal on May 5, 2011 titled “Some Banks Open the Spigot for Commercial Real Estate” by David Benoit. There is also a rather truth-telling graph accompanying the article showing the commercial real estate loan drops from just over $500 million to $185 million between 2007 and 2008, which we are pretty much all aware of, yet most troubling is the slow recovery, as 2009 was a disaster with only $180 million in commercial real estate loans, with only a slight uptick in 2010 to $120 million.
Luckily, there are some decent commercial real estate loans now being made for new commercial construction, and existing commercial buildings being sold. Many of the largest banks have individually more “in the pipeline” as the WSJ explains, than the total available for 2007. That quite frankly is just excellent news all the way around. Indeed, it makes sense for any large scale commercial construction company to start ramping up their projects now, so they are completed during the up cycle and recovery period. This will also drastically help our economy putting hundreds of thousands of skilled laborers back to work.
Indeed, in studying all the information available, the commercial construction industry is looking pretty good by late 2011, and I imagine it will continue growing Real Estate Pricing Methods through 2012. It’s hard to predict anything absolutely, but all the indicators are in the positive favor. I hope you will please consider all this and think on it.

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