Other factors explaining why investment in nonresidential structures dropped during seven of the past eight quarters include pandemic-induced behavior changes. In other words, the pandemic has “undermined” several commercial real estate segments, such as reduced business travel and office space utilization and increased store closures, according to the report.
Construction spending in lodging projects dropped around 33.8% year-over-year, while spending in public safety projects declined 38.5%, according to an ABC report on nonresidential construction spending.
