A number of companies can coast on recession-era fixes, which leave them better capitalized for this (possible) downturn than 2007’s leverage-fest, but the underlying fundamentals do not suggest that we are in a thriving economy. All of the market indicators from GDP to employment data, hint that we, as a whole, are not doing well.

But let’s focus on a small piece of this and try to get some things under control. Let’s look at construction unemployment, which has fallen over the last few months, but has dropped to a still whopping 13.6% in July, according to the Associated General Contractors of America.

Ask hoteliers--and I have--and they are loathe to build more hotels just as the market rates are beginning to grow. Cities that had limited construction leading into the downturn, Boston as possibly the best example, weathered the recession very well and have become a leading market mentioned in the same breath as New York City and Washington, DC. So, construction is not popular among landlords. Ask Las Vegas if it would be stoked for new construction. Your shrieks are noted.

Recommended For You

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.