By CAROL TRAPANI
Commercial real estate construction ground to a halt in the fourth quarter, declining across all building types.
There were seven commercial buildings under construction in the fourth quarter, for a total of more than 509,000 square feet.
As a comparison, 41 commercial buildings were completed in 2008.
With the anticipation of sublease space coming back on to the market as well as the continual downsizing of Corporate America, new or speculative projects are not expected to break ground in the coming year.
This decline in commercial construction primarily is due to the recession, with each market facing its own distinct challenges.
The high watermark for office construction occurred in 2006, spurred by the explosive expansion in the subprime mortgage industry.
Currently, there are two office buildings in Central County totaling 170,000 square feet under construction. One additional office building totaling 30,000 square feet is being built in South County.
Two retail centers totaling 291,000 square feet in West County were under construction in the fourth quarter.
Many projects have been put on hold as large national chains have stalled their expansion plans and some have announced closings.
Industrial development is virtually nonexistent, with one project totaling 14,507 square feet in South County. The lack of available land has led to redevelopment opportunities of existing properties.
Trapani is a first vice president in the Newport Beach office of CB Richard Ellis Group Inc.
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