The commercial construction boom that began in the spring of 2004 ended in the middle of last year due to the worldwide collapse of the credit bubble and accompanying recession that quickly cut demand for additional space. The latest building cycle was stopped by problems in the economy several years short of the usual end due to overbuilding. In comparison, the previous building boom of 1994 to 2000 persisted for 6Vi years. So, the downside of the building cycle is likely to be relatively short, unlike the 3Vi-year real estate bust experienced earlier in this decade.rnThe construction outlook abruptly soured in the second half of 2008. Spending for non-residential construction expanded at a 12% annual pace from July 2004 to July 2008, then growth dropped to less than a 6% pace through October 2008, with declining spending now expected through late 2009.rnPrivate commercial construction got the quickest and hardest hit from the credit freeze. The value of starts in October 2008 plunged 44% from September 2008 for the sum of hotel, office, retail, and warehouse. Projects ready to start were held up to redo financing and/or wait for a clearer view of the recession's scale.
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