The most recent Architecture Billings Index indicates that business conditions in the commercial real estate market are now improving, the American Institute of Architect reports.
While the index showed that the commercial real estate industry stood on shaky ground for much of 2011, towards the end of the year, indicators suggested that there may be notable improvements seen in 2012.
"We saw nearly identical conditions in November and December of 2010 only to see momentum sputter and billings fall into negative territory as we moved through 2011, so it's too early to be sure that we are in a full recovery mode," said AIA chief economist Kermit Baker. "Nevertheless, this is very good news for the design and construction industry and it's entirely possible conditions will slowly continue to improve as the year progresses."
Real estate records from the report showed that the ABI score remained steady at 52 from November to December. Although the score is still relatively low on the scale, ABI noted that any score above 50 indicates an improvement.
Regionally, the report indicated that the South and Midwest continued to have the strongest commercial real estate market conditions, with scores of 54.2 and 53.1, respectively.