Source: Dodge Data & Analytics
Office, shopping center, warehouse and hotel construction will increase 11% in 2016, up from the 4% gain estimated for 2015, with office development resuming its historical role as the leader in the commercial building upturn, according to the newly released 2016 Dodge Construction Outlook.
Multifamily construction dollar volume, meanwhile, is forecast to increase 7% on a 5% increase in built units to 480,000 – somewhat slower than the gains in 2015, but still growth – with the ongoing development wave extended by low vacancies, rising rents and the demand for apartments from millennials, according to the report released by Dodge Data & Analytics.
The continued strength of multifamily construction has driven total residential building, up 18% this year, with single-family resuming an upward trend after plateauing last year.
Other sector predictions by Dodge include the following:
- Institutional building will advance 9%, picking up the pace after the 6% rise in 2015. The educational facilities category is seeing an increasing amount of K-12 school construction, supported by the passage of recent school construction bond measures.
- Though public works will be flat for 2015, activity from the new multiyear federal transportation bill expected to pass Congress by the first half of 2016 will begin show up in the numbers later in 2016 and into 2017.
Read more at Dodge Data & Analytics