Commercial real estate is in trouble according to architechs

The most recent AIA/Deltek Architecture Billings Index report showcases a drop to 44.8 in the month of September.

This index is an economic indicator for nonresidential construction activity, with a lead time of approximately 9–12 months. Investment groups like Wells Fargo, media outlets, firms of all sizes, and business leaders rely on this leading monthly economic indicator to assess business conditions and predict and track the market.

When the index goes below 50 it means that there are worsening economic conditions. Architecture firms are reporting a drop in what they are billing.

Given that the return to the office has been slow and less people are having to work in an office setting means less demand for commercial real estatte for new offices. The COVID-19 pandemic changed the way business and work is done providing us with a new path to economic trends that have not been seen before.