Know about market updates

South Florida construction spending drops again in September

South Florida construction spending drops again in September
Construction spending will likely fail to surpass record last year
October 27, 2016 11:16AM

Construction at One Thousand Museum during the summer (Credit: Field Condition)

New construction spending took another hit in September, according to a new report from Dodge Data & Analytics. 
Construction contracts inked last month totaled $519 million, a 5 percent drop from the same month last year. Residential contracts are responsible for the drop, with only $267 million worth of contracts signed for residential projects, 14 percent less than the $310 million in September 2015.
The trend of fewer residential contracts could continue amid weakened demand for new condo construction. Some projects have canceled, paused or delayed construction as a result of the slow market. Financing is also increasingly difficult to get, experts and developers say.
Nonresidential spending, which includes office, retail, hotels, warehouses and other commercial uses, totaled nearly $252 million, a 7 percent increase from the $235 million in September 2015, according to the report.
On a cumulative, year-to-date basis, construction spending is slightly under this year compared to last. So far this year, spending totaled $7.78 billion compared to $7.79 billion in 2015.
In August, spending took a big hit, dropping 22 percent from July.
Two major projects have paused construction over the last week following accidents that led to deaths at Echo Brickell and Hyde Resort & Residences in Hollywood. – Katherine Kallergis

Source: The Real Deal

Leave a Reply

Your email address will not be published. Required fields are marked *