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Billings and inquiries for work drop; hiring plans on hold.
Latest survey shows the highest percentage of U.S. employers reporting their intent to hire since 2009.
Jones Lang LaSalle Global Office Index shows this was the seventh consecutive quarter where prime rents have risen, which reflects an 8.2% uplift since the bottom of the market in fourth quarter 2009 and a 5.5% increase year-on-year.
AIA reported the August ABI score was 51.4, following a very weak score of 45.1 in July. This score reflects an increase in demand for design services.
The most recent results show a gradual increase from previous surveys in those who anticipate hiring additional FM staff in the next six months, with 24% reporting such plans.
Following the first positive reading since January 2008, the ABI dropped nearly two points in October. 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.
Dunlap stated, “[This year] has been an exceptionally difficult [one] for this industry, but I see brighter days ahead. There are enough indicators that tell us that the current industry recession has probably bottomed out. The modest increases in shipments and orders during the second quarter suggest this.”
There has been a recent moderation in the downturn in design services billings, but the Architecture Billings Index (ABI) reveals that an economic recovery has stalled.
Battered by the U.S. economic recession, the commercial real estate market is struggling to maintain values across all property types and geographic areas, kicking a growing number of investors into survival mode as they painfully watch the value of their existing portfolios decline