In The Pipeline: CoStar Development & Construction News for March 25 – 31

News and Notes on Trends, New Projects and Construction In the Commercial Real Estate Development Pipeline Around the U.S.

The Architecture Billings Index (ABI) remained in positive territory for the fourth consecutive month in February, despite continued difficulty for developers in accessing construction financing.

The American Institute of Architects (AIA) reported the February ABI score was 51, following a mark of 50.9 in January, reflecting a slight increase in demand for design services. Any score above 50 indicates an increase in billings.

The new projects inquiry index was 63.4, up from mark of 61.2 the previous month and its highest reading since July 2007.

As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12-month lag time between architecture billings and construction spending.

"This is more good news for the design and construction industry that continues to see improving business conditions," said AIA Chief Economist Kermit Baker. "The factors that are preventing a more accelerated recovery are persistent caution from clients to move ahead with new projects, and a continued difficulty in accessing financing for projects that developers have decided to pursue."

Among U.S. regions, the Midwest led with a 56 average, followed by the South, 51.3; Northeast, 51; and West 45.6.

The commercial/industrial posted an average 55.1, followed by multifamily residential at 53.3; institutional, 50.3; and mixed practice, 46.3. The regional and sector categories are calculated as a 3-month moving average.

The new building about a quarter mile from Route 128/I-9 is designed to meet the technical requirements of companies seeking redundant power feeds and fiber connectivity, according to Jones Lang LaSalle, which is serving as the leasing agent.

Each floor will have about 20,000 square feet of raised flooring and 2 megawatts of IT load. The space will also include HVAC systems and security optimized support advanced datacenter operations.

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In The Pipeline: CoStar Development & Construction News for March 25 - 31