- May 1, 2015: Vol. 27, Number 5

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Real estate market expands into development phase

by Loretta Clodfelter

The U.S. commercial real estate market is firmly into the expansion phase of the property cycle — and that means construction activity is strong across the country. The total value of all U.S. construction in 2014 — including commercial real estate, residential real estate, and infrastructure and public projects — reached $960.2 billion.

No segment of the property market is currently as active as the multifamily sector. Apartment construction has more or less reached its previous peak. Apartment completions in 2014 surpassed the number of completions in 2008, and the sector’s pipeline of projects under construction is valued at 95.7 percent of the previous peak (not adjusted for inflation) set in March 2008, according to CBRE.

The office and industrial segments also have been quite active. The office construction pipeline is 88.4 percent of its previous peak, set in March 2008, while the industrial construction pipeline is 80.7 percent of the peak set in Octobe

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