Another all-time high in Abbotsford

The construction business is booming in Abbotsford, and the commercial sector is a huge part of it.

Commercial building investment in Abbotsford CMA reached a record $39.1 million in the third quarter of 2008, up 16.3 per cent compared to last quarter, according to the Vancouver Regional Construction Association's analysis of Statistics Canada's third quarter report on investment in non-residential building construction report.

Total non-residential investment spending increased 12.8 per cent in the third quarter of 2008 to $62.7 million from $55.6 million in the previous quarter.

"The commercial sector has posted very solid gains so far this year, but total investment spending in trending down after exceptionally high levels in 2007," said Keith Sashaw, Vancouver Regional Construction  Association president.

"Spending declines are anticipated during the credit squeeze and the economic slowdown underway.

"In addition, major institutional projects in the region are nearing completion, which impacts the overall numbers," he said.

Highlights from the report:

·         Total non-residential building construction investment declined 12.5 per cent to $169.4 million for the first three quarters of 2008 over the same period of 2007.

·         Commercial building investment spending was up 94.6 per cent, institutional-government spending fell 62.7 per cent and industrial investment rosse 1.8 per cent.

·         Total non-residential construction spending was up 13 per cent to $62.6 million compared to $55.4 million during the same quarter in 2007.

·         Commercial building investment spending jumped 97.7 per cent, instituational-government spending declined 53.4 per cent and industrial investment was up 22.7 per cent.

Statistics Canada estimates building construction cost inflation at 9.8 per cent in the thrid quarter of 2008.

Total non-residential investment spending in the Vancouver CMA dipped 1.4 per cent to $2.449 billion for the first three quarters of 2008 over the same period last year.

Commercial building investment spending was up 7.2 per cent, institutional-goverment spending was down 21.3 percent and industrial investment was down 15.1 per cent.

 ~ Courtesy of Real Estate Review Saturday October 25, 2008