Albuquerque Area Activity Report

Weathering the Ebbs and Flows of the Economy

With an almost constant drumbeat of doom and gloom coming from the national press regarding the state of the economy, the New Mexico construction industry seems to be weathering the choppy seas with agility so far.

McGraw-Hill Construction, the parent company of this magazine, forecasts a small dip in activity for New Mexico in 2008. After $3.8 billion of construction activity in 2007, the state should expect $3.6 billion for 2008.

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In fact, McGraw-Hill Construction’s Research and Analytics Unit reported a total of $99.7 million in contracts for future construction in December in the non-residential category, including commercial, manufacturing, education and other buildings. That’s more than double the contracts from December 2006.

However, residential future contracts plummeted 39% over the previous year, and it may not be long before commercial construction is negatively affected by the sub-prime crisis and a weakening national economy.

Symptoms are already being felt. “Major private-sector projects have been put on hold, with manufacturing particularly weak, while funding cuts have hit transportation and other public capital improvement projects,” says Lee Reynis, director of the University of New Mexico Bureau of Business and Economic Research.

Developers of two Albuquerque projects hope to be a beacon for future growth. The Anasazi Downtown brings nine stories of affordable yet modern condo living to a slowly improving downtown core. Meanwhile, Mesa del Sol hopes to attract businesses and residents to the master-planned community with its new Town Center, featuring a dramatic design by Antoine Predock AIA.

In the renovation/restoration section, St. Vincent Regional Medical Center’s major renovation in Santa Fe is featured, as is a unique renovation and rebirth of a community theater in Artesia.

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