Commercial construction in Houston showing signs of growth
February 27, 2013
Many Houston-based firms that work in the commercial real estate industry will be firing up their builder construction software in the upcoming weeks. Patrick Jankowski, vice president for research at the Greater Houston Partnership, reported the city issued $480 million worth of building permits in January. More than half of the building permits by value were approved for commercial structures.
"Construction's always one of the last sectors to recover, and we're really starting to see the strength in that recovery right now," said Jankowski. "There's been some pent-up demand, some delay in projects, because they didn't know whether the market could bear it."
Many of the new buildings are set to be offices
The number of building permits that were issued grew 35 percent since January 2012,suggesting commercial builders are ready to take on new initiatives entering 2013. Offices buildings drove the rash of new projects with nine structures commissioned to be built in Houston during January, amounting for nearly $60 million in value.
"But with as strong as the job market has been, as strong as exports have been, I think everyone's feeling much more comfortable about going ahead with projects that they may have had on the drawing board during the weaker parts of the economy," said Jankowski.
The construction industry is always a good indicator of economic activity, and with nearly $500 million in building permits being issues in January alone, signs points to improvements in U.S. markets. A recovery can begin if businesses begin to open up their checkbook and purchase some office space in these new buildings.