THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Monday, January 20, 1997 TAG: 9701180843
SECTION: BUSINESS WEEKLY PAGE: 8 EDITION: FINAL
SERIES: 1997 FORECAST
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: 51 lines
One phrase may sum up the construction outlook for 1997: Build-to-suit . .
Many general contractors and subcontractors expect a moderate year of construction activity. They don't foresee any booms. Nor do they expect to be out of work. There will be enough to keep many busy, said Tommy Hitt, vice president of Hitt Electric Corp.
As long as the interest rate remains low, construction should continue, he said.
``It doesn't seem to be booming like last year,'' Hitt said. ``There's still a lot of work, and for the next couple years there'll be plenty of construction. We have adequate work to carry us through the year.''
Steve Vermillion, executive director of the Associated General Contractors of Virginia, echoed Hitt's sentiments.
``The general feeling we have is it'll be another solid year,'' said Vermillion, who expects between a 4 and 6 percent increase in statewide construction volume. The national construction forecast is pinned at 4 percent growth, according to the F.W. Dodge Division of McGraw Hill.
``Nothing dramatic, but it's better this way,'' Vermillion said.
Construction permits for commercial projects reached $580 million for the first 11 months of 1996, according to figures from the Builders and Contractors Exchange. That's a decline from the same period in 1995, which reported $833 million in commercial permits.
While many don't expect any dramatic increases in construction schedules, Hourigan Martone Construction Corp. expects to be busy.
``I think we're definitely seeing more activity in '97 than in the last couple years,'' said Mark J. Hourigan, president of Hourigan Martone. ``That's primarily because of specialty use type buildings in different industries. Most of what we're seeing is build-to-suit. But we're seeing much more build-to-suit down here than in the past couple years.''
Economic development officials have attracted several companies to the region that have needed build-to-suits, which are structures specially designed for a tenant's purposes.
``Vacancies are finally down to the point that there's no large blocks of space for any appreciable size user. Their only option is a build-to-suit option,'' Hourigan said.
``The market still isn't strong enough - from the demand side or financing side - for people to put up spec space.'' ILLUSTRATION: [Color Photo]
[Hammer]
KEYWORDS: 1997 FORECAST CONSTRUCTION