Market Forecast: Commercial Construction Stabilizes Housing Slow Down/Residential Construction

As the housing market continues to weigh down the economy, new commercial construction and renovation projects thrive despite the residential slowdown. In Central Florida, the commercial construction sector is pumping money and jobs into the economy as residential construction companies are cutting back costs.

One of the major concerns related to the housing slow down was the strain the unemployed residential construction companies would put on the local economy. With an increase in lay offs and new home construction, many were concerned that Central Florida would spiral into an even deeper recession.

Alternatively, Central Florida has demonstrated great resilience. Commercial construction has filled the void in residential construction and fought the economic burden of the housing slow down. The growth spurt in commercial construction has increased tremendously in last few years. Commercial and multifamily construction and renovation helped offset the slowing residential construction, keeping the economy from experiencing a more drastic slow down.

In fact, according to the Metro Orlando Economic Development Commission, Orlando ranks 9th in the nation in terms of office space under construction. The region ranks 3rd nationwide in terms of growth in inventory over the past 5 years resulting in an increase of 7.87 million square feet of office space (approximately 13% increase). In addition, Orlando has been projected to be the top market in the nation in commercial real estate market performance for the next two years.

With this extreme growth in the commercial sector, the Central Florida economy continues to absorb the hits it’s taking from the housing slow down and job market. Commercial and multifamily construction continues to have a positive effect on our local economy.