Office and Commercial Construction Spending May Fall 13%

Kermit Baker, Harvard economist and advisor to The American Institute of Architects, forecasts that in 2010 construction spending on hotels, office buildings, and retail centers could be in a second year of decline. He predicts about a 13% drop—which some might consider a recovery since the drop in 2009 was 20%. Baker suggests that such projects will be “marginally higher” in 2011.