Anxiety grips state's economy
Commercial real estate
After surviving a virtual shutdown of development activity during the last three years, real estate and construction companies are now bracing for another retrenchment that could stall projects and undermine property values.
Their most immediate concern: Companies and consumers that the expect to fill the offices, stores, and residences of new buildings will have to cut back spending, leaving builders unable to finance construction.
Slow hiring by local businesses blocks construction of new office towers, while continued sluggishness in the states housing market will hurt demand for new condominiums and houses. About the only sector that remains strong is rental housing, which has already been supporting the bulk of commercial development for the past 18 months.