[ad_1]
Contractors carry a concrete slab as part of a complex of apartments under construction in Chicago.
Christopher Dilts | Bloomberg | Getty Images
All aspects of the architectural sector are slowing down suddenly, indicating a general weakening of commercial real estate demand.
A key industry index, the Billings Architecture Index, fell into negative territory in June, according to the American Institute for Architects. Requests for new projects reached a 10-year low, while design contracts also declined.
"With bills declining or stagnant in the last five months, it seems we are settling into a period of weak demand for design services," said Kermit Baker, chief economist of AIA. "With new design contracts reaching a minimum of 33 months and project applications reaching a minimum of 10 years, work in progress could begin to be completed, despite the current strong backlog."
The index does not include single-family dwellings but incorporates the construction of multifamily apartments. This sector was negative in June, as a large stock of new offers was coming onto the market. Demand for rental apartments is still quite strong, but there is concern over oversupply, which is likely to manifest itself early in planning.
On a regional basis, on average monthly, the ABI was positive in the south but negative in the west, the center-west and the northeast.
Source link
