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Real Estate / Construction Industry Update

CRITICAL ISSUES UPDATE

Manufacturing facility construction rose 20.7 percent in the first eleven months of 2006 compared to the previous year. US manufacturing growth is expected to slow to 2.8 percent in 2007 compared with 4.5 percent in 2006, according to the National Association of Manufacturers.
 
INDUSTRY UPDATE
 
Nonresidential Construction Up - US nonresidential construction rose 13.6 percent in the first 11 months of 2006 compared to the same period in 2005, according to the Census Bureau. Lodging construction rose 52.3 percent, while amusement and recreation construction rose 21.9 percent.
 
Industrial Property Vacancies May Increase - The US industrial property vacancy rate is expected to rise 6.8 percent between October 2006 December 2007, according to Property Portfolio & Research. Slowing economic growth will cause the increase, but not all parts of the US will be affected equally. The Midwest vacancy rate will rise most due to declining auto manufacturing, but increasing imports from Asia and Europe that drive demand for warehouse space on the East and West coasts will dampen the increase in industrial property vacancies in those areas.
 
The real estate team at Smith & Howard is available to answer any questions or concerns you may have about the industry. Please feel free to call us at 404.874.6244.
 

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