ACEC's New Brief on Commercial and Residential Real Estate

9/28/22:

To the ACEC Community:

With the latest release from our Private Industry Brief series, we continue to provide our member firm executives with a comprehensive analysis of the most critical private markets for the engineering and design services industry.

The commercial and residential real estate markets offer our industry an array of opportunities for business growth. From land development to design, surveying, and advisory services, the breadth and importance of the markets make it a primary focus for Briefs. 

Here are some of the data contained in the new brief on commercial and residential real estate:

• Design and construction spending for single-family and multifamily residential markets is projected to reach a combined $602 billion, up 38% year-over-year in 2022.
• Commercial real estate spending is up 8% year-over-year and is projected to reach $98 billion.
• Despite a slight erosion in sentiment on the commercial and residential real estate markets, our member firm executives remain optimistic. Our Q3 Engineering Business Sentiment survey reports that firm executives feel confident about the current state of the markets for both commercial (+44) and residential (+50) real estate.
• Looking ahead, future sentiment for these markets is decidedly negative, with optimism in the commercial real estate market falling to -37 and residential at -43.
• Design and construction spending typically lags 12-18 months behind the overall economy. The mix of high inflation, increased mortgage rates, and slowing growth indicate declines in both markets, which substantiate the erosion of confidence by our surveyed firms.

These are just a few insights in the private market brief, free to download here. The brief also analyzes current market trends, the effects of the return to the office, and government action's impact on the marketplace. This practical information will help our firms better plan and make informed decisions about where to invest their time and resources.

I encourage you to download our entire Private Industry Brief series and share them with your colleagues. I also encourage you to look at our other resources, including events like the first-ever Private Market Symposium on the energy market taking place this November in Houston, Texas.

Have a great week.