The construction of retail real estate has received a slight but steady increase in inventory for the past year. The Federal Reserve has noted retail sales and construction on commercial real estate in the Fourth District.
The National Real Estate Investor reports that the retail construction actually is the only kind of property to have had experienced a noteworthy increase in inventory. A 14.2 percent rise in inventory between the years 2000 up to 2008. Since then up to the present the stocks is still believed to be increasing with 1.2 million sq. ft. added in the last quarter of 2015. This is nothing though compared to the average quarterly rate of 8.0 million sq. ft before the economic downturn in 2008. Another 34.0 sq. ft. of stock is expected to stack up between the years 2014 and 2017. Dallas, Houston, Philadelphia, Atlanta and Chicago markets are among the huge markets that might complete its construction in the three year prediction. However, the rate of vacancy is decreasing steadily will probably be at 9 percent before the year 2017 ends.
Trib Live states that the Federal Reserve periodic survey shows that the Fourth District has experienced a slim growth in retail sales and construction activity. There was a 2.5 percent increase in new auto sales. Construction of commercial and housing sectors were extended due to the abnormal warm weather which established them strongly in the market. But with the current troubles in the economy outside the U.S and the upcoming presidential elections, homebuilders are doubtful for the year 2016.
Other details of the survey showed that goods would cost manufacturers more if they wanted to sell it outside the country due to the strong U.S. dollar. The energy market experienced difficulty because gas and oil worth continued to drop. A handful of drilling rigs reports being near 60% percent short of their maximum output at the end of 2014. Overall, the region has shown a steady growth in their economy.
What do you think about the current status of the retail construction in the United States?
