HAMILTON, NJ – Total construction starts declined 5% from February to March to a seasonally adjusted annual rate of $746.9 billion. Volatility caused by the presence or absence of large projects in healthcare and the utility/gas plant category, but, skewed the analysis. In March, nonresidential building starts fell 9% from February (seasonally adjusted), while residential building dropped 11%. Nonbuilding construction starts, but, rose 14% during the month.
For the 12 months ending March 2020, total construction starts were 2% higher than they were for the same period ending March 2019. Residential building starts were 3% higher, while nonbuilding starts were up 5% for the 12 months ending March 2020. Nonresidential building starts, but, were down less than one percent. The Dodge Index dropped to 158 (2000=100) in March from the 167 posted in February.
Considering the calamity that occurred towards the end of March as the fallout from the COVID-19 (Coronavirus) hit the economy, construction starts held up rather well, stated Richard Branch Chief Economist for Dodge Data & Analytics. Construction starts in March were unlikely to be greatly impacted as projects that broke ground during the month likely had materials sourced and in-place and labor booked well ahead of the scheduled groundbreaking. That momentum and plotting is hard to reverse at the last minute. Additionally, most of the stay-at-home orders and construction moratoriums were not instituted until the last week of the month and into April. Therefore, April construction starts are likely to be a very different tale with states like New York, New Jersey, and Pennsylvania among others banning construction activity. April s starts data will be the first right indication of how the crisis will impact the construction industry.
Nonbuilding construction jumped 14% in March to a seasonally adjusted annual rate of $168.9 billion due to the start of several large electric power facilities. When the massive 161% gain in the utility/gas plant category is removed from the total, nonbuilding starts fell 9% during the month. Highway and bridge starts rose 5%, although the environmental public works category dropped 5% and the miscellaneous nonbuilding category fell 44%.
The largest nonbuilding project to break ground in March was the $1.0 billion 1,085 MW Indeck Niles Energy Center power plant in Niles MI. Also starting in March were the $600 million Jordan Creek Wind Farm in Williamsport IN and the $469 million Titan Solar Project in Culberson county TX.
For the twelve months ending March 2020, total nonbuilding starts were 5% higher than the twelve months ending March 2019. Starts in the utility/gas plant category were 62% higher, while environmental public works were down slightly. Street and bridge starts were 5% lower for the twelve months ending March, while miscellaneous nonbuilding was down 15%.
Nonresidential building starts fell 9% in from February to March to a seasonally adjusted $259.8 billion. Commercial building starts were 5% lower, with losses in three of the five commercial sub-categories (warehouses and parking structures made gains). Manufacturing buildings dropped 7% during the month, while institutional buildings dropped 12%. Institutional buildings posted a large gain in February due to the start of several large healthcare facilities, which were not present in the March statistics. But, education facilities posted a solid 18% gain in March.
The largest nonresidential building project to break ground in March was the $616 million Duncan Neuroscience Research Facility in Saint Louis MO. Also getting started in March was a $415 million Amazon fulfillment warehouse in Wilmington DE and a $369 million Amazon fulfillment center in Colorado Springs CO.
On a 12 month total basis, nonresidential building starts were less than one percentage point lower than they were for the 12 months ending March 2019. Commercial starts were up 2%, while institutional building starts were 1% lower and manufacturing starts were down 7%.
Residential building starts went 11% lower in March to a seasonally adjusted annual rate of $318.2 billion. During the month, single family starts dropped 14%, while multifamily starts lost 3%.
The largest multifamily structure to break ground during in March was the $420 million Hunter s Point South Mixed-Use building in Long Island City NY. Also starting during the month was the $200 million Piazza Terminal Mixed-Use building in Philadelphia PA and the $125 million Adeline Residences in Phoenix AZ.
For the 12 months ending in March, total residential starts were 3% higher than the 12 months ending March 2019. Single family starts were up 5%, while multifamily building starts were less than one percent lower.

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AUSTIN, TX – Rastegar Property Company announced plans to develop the tallest living wall in North America within its landmark 26-tale, 270 residential condominium tower development located at 1899 McKinney in Dallas. The unique feature of this building is improving local air quality by breathing cleaner air into Dallas with over 40,000 plants estimated to capture over 1,600 pounds of carbon dioxide and produce 1,200 pounds of oxygen annually.
This project is very personal to me because I was raised in Dallas and my wife Kellie and I have always had a dream of being part of the Dallas Skyline in a way that enhances quality of life for its residents and the surrounding community, said Ari Rastegar, Founder and Chief Executive Officer of Rastegar Property Company. Our shared vision and objective behind this project will bring something new to the Dallas real estate scene that will positively impact the community, increase walkability, and bring more green space to the corridor.
The 1899 McKinney development is located across the street from the Union mixed-use complex that sold for a record breaking $370 million in February 2020. The soon to be demolished structure on site was previously occupied by a building that housed an office furniture showroom and a nightclub.
“We thought about how living walls can positively influence the city of Dallas,” said Zach Smith, CEO of Zauben, a Chicago-based living wall company. “We wanted to help champion the sustainability goals of the city and make an example that other forward-thinking cities can follow. Rastegar is offering a fresh perspective on how developers can grapple with some of the most urgent environmental issues, including air quality and carbon emissions.”
The building was designed by Chicago-based architect Solomon Cordwell Buenz. Plans show a contoured glass tower with heavily landscaped balconies. There s also a pocket park that will be maintained by Rastegar on McKinney Avenue and the building s parking will be a wholly underground garage.
Rastegar welcomed Kristaps Porzingis of the Dallas Mavericks and his family as partners in the project. We are committed to the long-term health and economic growth of the Dallas community and are thrilled to support the concept of the Living Wall, said Martins Porzingis. Our partnership with Rastegar facilitates our interest in high growth areas within the cities we care about, and bright a spotlight on sustainability efforts to make our communities cleaner and better places to live.

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NEW YORK, NY – Strategic Properties of North America (SPNA), a Chicago-based real estate investment firm, and Integrated Capital Management (ICM), a capital management firm in Los Angeles, announced the acquisition of Cityfront Place, a 39-tale residential tower in downtown Chicago s coveted Streeterville submarket.
Ideally located on the waterfront at 400 North McClurg Court, where the Chicago River intersects Lake Michigan, Cityfront Place s 480 units are proximate to Michigan Avenue, Lakeshore Drive, and Navy Pier.
The acquisition was financed with a co-GP investment from ICM, an LP equity investment from a Korean global investment manager, and a senior loan from Freddie Mac. Newmark Knight Frank (NKF) represented SPNA in the transaction, and the seller was represented by CBRE.
Integrated invests alongside accomplished owners and operators in their respective areas of expertise, and we believe SPNA is perfectly suited to do its vision for a new and improved Cityfront Place, said John Carrick, managing principal and co-founder of ICM. This acquisition marks the third deal closed in our most recent real estate private equity fund, and it further evidences Integrated s commitment to provide investors a portfolio of institutional quality assets that are truly diversified among sponsors, asset classes and geographic markets.
Built in 1991, Cityfront Place is comprised of studio, one, and two-bedroom apartments, as well as a modest amount of commercial space, including the well-known Lizzie McNeill s Irish Pub. SPNA plans to reposition the property with a program of capital improvements to communal spaces and individual residences as leases expire over the coming three years.

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