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AIA Billings Index Shows Improvement

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Calculated Risk details the findings of the latest AIA billings index. The original Reuters story on the latest index reading is here. It is considered a leading indicator for commercial real estate. The index is at 48.5. Anything below 50 indicates contraction. So the index still indicates a slump in commercial real estate construction and design. However, the index has been slowly creeping higher in recent months and is getting pretty close to 50--meaning things are starting to improve.

This suggests the slump for commercial real estate design might be nearing a bottom. However, according to the AIA, there is an "approximate nine to twelve month lag time between architecture billings and construction spending" on non-residential construction. So there will probably be further declines in CRE investment through all of 2010, and probably into 2011.

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AIA april 2010

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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