Construction industry trends — increased costs and greater use of technology
Commercial real estate has seen a pullback in construction activity, with space under construction falling in recent years across asset types, according to the Real Estate and Construction Compass report from BDO, which analyzed a decade of real estate data from CoStar in the multifamily, retail and industrial sectors.
National multifamily construction activity peaked in 2016 with 399,630 units under construction. That fell to 64,490 units under construction in 2018, according to the report. Industrial construction activity peaked in 2017, with 1,005 warehouse buildings under construction, falling to 319 buildings in 2018 — the lowest volume since 2011.
One of the factors that may be driving the pullback could be better and more transparent throughout the industry, which has meant less overbuilding and oversupply.
“I think there is better or more transparent data that’s helping to avoid the same glut we’ve seen in previous recessions, though we are seein