Real Estate & Construction News Roundup (6/26/24) – Construction Growth in Office and Data Center Sectors, Slight Ease in Consumer Price Index and Increased Premiums for Commercial Buildings

In our latest roundup, U.S. interest rates remain uncertain, construction firms continue to use artificial intelligence, New York City updates commercial zoning regulations, and more!

• According to analysts, high vacancy rates and declining rents have hurt San Francisco’s office market so badly that it could take almost 20 years to recover. (Eric McConnell, Yahoo)
• The New York City Council approved updated commercial zoning regulations that expand where businesses can be located in the city, more than double the space for small-scale clean manufacturing, and enable adaptive reuse projects involving existing buildings. (Joe Burns, Construction Dive)
• The insurance industry is responding to the proliferation of extreme weather events and the risks associated with operating commercial buildings in vulnerable areas by increasing premiums. (Renea Burns, Tim Coy, Niall Williams, Deloitte)
• Real estate capital markets have been under pressure globally, while the direction of interest rates in the U.S. remains more uncertain as compared to the Federal Reserve’s global central bank counterparts. (Josh Lipton, Yahoo)
• Across the country, construction firms are using artificial intelligence to improve their safety cultures, monitor their legal documents for questions and issues, and manage project risk. (Matthew Thibault, Construction Dive)
• The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, increased 2.7% in May due to growth in sectors like offices and data centers. (Sebastian Obando, Construction Dive)
• The May 2024 Consumer Price Index (CPI) eased very slightly from the previous month, according to the latest figures from the U.S. Bureau of Labor Statistics. (Jim Probasco, Bankrate)

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