...Strong Gains in Private Nonresidential Construction: Through the first eight months of 2015 spending on private nonresidential construction (value put in place) grew 12.1% compared with the prior year. This follows an 11.3% improvement during 2014. Construction spending for manufacturing, office, lodging and other commercial properties was robust, reporting double-digit year-over-year growth. Fitch expects spending in this sector will advance 8.5% this year as property fundamentals in the commercial sector continue to improve. Property Fundamentals Continue to Improve: Property fundamentals for commercial real estate are expected to remain healthy in the intermediate term. While new construction spending has been increasing over the past few years, demand remains relatively robust. Absorption for most property types is projected to continue to outpace new supply, leading to modestly lower vacancy rates. Stronger occupancy rates should support rent growth in the near to intermediate term....
