CSBJ Daily

Reed Construction Data, an industry research group, took a look at the year-to-date value of nonresidential construction starts for January – March 2008. Not surprisingly, retail construction was down 14 percent, nonresidential building was off 5 percent and heavy construction fell 11 percent compared to first quarter 2007.

The retail results are closely tied to the slowdown in new housing construction and to general economic belt-tightening said Associated General Contractors of America chief economist Ken Simonson.

The Wall Street Journal also reported last week that respected national retailers like Wilson’s the Leather Experts, Foot Locker, Inc. and the Zale Corp. are closing hundreds of stores throughout the country. Others like The Sharper Image have filed for bankruptcy in first quarter 2008. At the same time, new construction is increasing the amount of available retail space by 3.5 percent in the top 54 U.S. markets, based on additional research from Property & Portfolio Research, Inc.