Nonresidential spending — temporarily buoyed by stimulus funding for roads, bridges and infrastructure improvements — fell 1.5 percent during October to the lowest annual rate since July 2007.
“Highway and street construction clearly got a big boost from the stimulus; unfortunately many of those projects are already beginning to wind down,” wrote Ken Simonson, chief economist of Associated General Contractors of America, in a Dec. 1 update. “Without action on new highway and transportation legislation, road and transit builders are likely to suffer further declines.”
Simonson based his conclusions on Census Bureau data that showed nonresidential construction spending slumped to $652 billion, an 11 percent decline compared to October 2008.
At the same time, “Even formerly robust construction segments, such as manufacturing and power, have run out of steam,” he said, noting that spending in both categories dropped more than 2 percent from September.
He also wrote that “needless delays and red tape” have plagued the stimulus contracting process.
There were a couple of bright spots in the report, however.
Educational spending was up 1.1 percent for the month — and while it saw a month-over-month decline of 0.3 percent, highway and street construction spending were up 4.7 percent compared to October 2008.
Based on President Barack Obama’s call last week to augment initial infrastructure stimulus with funds from $200 billion in unused Troubled Asset Recovery Program money, contractors might yet have a reason for optimism this holiday season.
A 30,000-square-foot industrial building at 3270 Astrozon Blvd. that was vacated by Stock Lumber, which filed for bankruptcy earlier this year, has been leased by SRS Acquisition Corp.
The tenant, which is expanding its business nationwide, is primarily focused on acquiring roofing suppliers, said Peak Commercial Properties broker John Rodgers who represented the landlord.
“SRS Acquisitions has completed at least nine acquisitions over the last 22 months,” he said.
Rich Kelly of Grubb & Ellis Quantum Commercial Group represented the tenant.
A 4,000-square-foot office/industrial building 210 S. 20th St. has been purchased by W.H. Realty LLC for $200,000.
John Rodgers and Mike Stuard of Peak Commercial Properties represented both the buyer and the seller, ITS.
All Smiles Dentistry has opened a second location in the King Soopers shopping center at 3250 Centennial Blvd.
The 3,024-square-foot office will give the practice its first west-side presence.
All Smiles Dentistry includes prosthedonists, orthodontists, pediatric and general practice dentists.
Ted Link of Cascade Commercial represented the tenant and Dan Rodriguez of the Madsen Co. represented the landlord, Grandview 06 A LLC.
Dr. Jared Waite has leased a 2,401-square-foot office at 5410 Powers Center Point.
The practice is scheduled to open during mid-December.
Link represented both the tenant and the landlord, 5410 Powers Center Point LLC.
Dr. Chad Watts, an orthodontist, has expanded his practice at 7560 Rangewood Drive to 2,989 square feet and has extended his lease.
Link represented the tenant and Brian Bjorson of Axis Commercial Realty represented NET REIT, the landlord.
The Rimrock Group, a civil engineering company, has moved into 8,309 square feet of office space in the Epic One building at 10807 New Allegiance Drive.
The landlord, Corporate Office Properties Trust, represented itself and Michael Palmer of Grubb & Ellis Quantum Commercial Group represented the tenant.
E.M. Microelectronics U.S. has renewed its 7,609-square foot industrial lease at 5475 Mark Dabling Blvd. in the Pikes Peak Research Park.
The landlord, Equastone Pikes Peak LLC, was represented by Michael Palmer of Grubb & Ellis Quantum and by Peter Scoville of Palmer McAllister-Frederick Ross Co. The tenant was represented by Jordan Christianson of Tenant Real Estate Advisors.
Gene Corp. LLC has leased 2,000 square feet of office space at 5160 Fontaine Blvd. in Security.
The tenant was represented by Holly Trinidad and Tim Leigh of Hoff & Leigh. The landlord, Honi Garven, was represented by Trinidad and by Steve Leigh.
Becky Hurley covers real estate for the Colorado Springs Business Journal.