Dodge Data & Analytics reports that the South Florida metropolitan area had the second-most construction contracts awarded in the first half of 2015 in the U.S.
Dodge reported $2.96 billion in commercial and multifamily construction starts in the area, behind only New York with $17.3 billion.
South Florida had more construction than larger metro areas such as Los Angeles, Houston, Dallas, Chicago and Washington, D.C.
“Market fundamentals such as occupancies and rents continue to show improvement, which supports further growth for commercial and multifamily construction,” said Robert A. Murray, chief economist for Dodge Data & Analytics. “While the expansion for the overall economy remains tepid, as shown by the 2.3 percent growth for GDP in the second quarter, commercial and multifamily development continues to be a prime focus of the investment community in its search for yield. The level of construction starts for commercial building is still well below the peak volume of the previous decade, even with double-digit gains over the past four years.”
Dodge says residential, retail, industrial and health care facility sectors have driven construction in South Florida. Given the number of huge projects in the pipeline, such as Miami Worldcenter, SoLe Mia in North Miami, Dania Pointe and Metropica in Sunrise, Atlantic Crossing in Delray Beach and Transit Village in West Palm Beach, construction spending isn’t likely to slow down, The South Florida Business Journal reports.
Dodge Data & Analytics said construction starts surged 38 percent in South Florida in the first half of 2015, compared to the same period a year ago.