The Real Deal Miami

Commercial construction spending could decline

February 13, 2008 04:14PM

Spending on commercial construction, which remained high as the housing
market slowed, may be headed for a decline. Spending remained flat
throughout November and December, and economists say it could begin to
drop soon. Already, retailers such as Starbucks have scaled back new
store openings, and demand for office developments has fallen off. On
the bright side, private educational spending remains strong as schools
continue to expand. A slowdown would dampen demand for construction
materials, which rapidly increased during the boom.