The commercial real estate market is doing very well, with prices of existing properties rising at strong double digit rates and a pickup in Architecture Billings pointing to stronger growth in commercial construction spending over the next year.
According to the CoStar Group activity in the commercial real estate market is very strong. Prices are rising at a 12-14% pace. Space absorption was the strongest in the current recovery. Leasing activity is robust. Investment activity is surging. This is a very strong indicator that the U.S. economy is doing just fine, and that growth could be picking up.
Architecture Billings are a good leading indicator of commercial construction activity, and the June reading was the strongest in the current recovery. See more details at Calculated Risk.