 Large construction projects in the Valley region weathered the pandemic in 2021 with hopes for better times ahead, a strategy followed by the industry nationally.
According to a mid-year forecast in July from the American Institute of Architects, nonresidential building construction spending fell about 2 percent in 2020 and 3.9 percent in 2021, but should rise about 4.6 percent this year. During the slump, the only type of construction that increased was health care.
However, “in 2022 virtually all the nonresidential building sectors are expected to see healthy growth, paced by lodging, as well as amusement and recreation, both of which saw steep declines during the pandemic,” the forecast stated.
This special report looks at projects that include a hospital, namely the $644 million Tarzana Reimagined; industrial at the Center at Needham Ranch in Santa Clarita; retail and restaurants at Unibail-Rodamco-Westfield’s entertainment district in the Westfield Topanga mall in Woodland Hills; hotels at the Mian Plaza and Conference Center in Camarillo; and residential at the Q De Soto, also in Woodland Hills. The report does not include developments in the planning stages; all these projects will have active construction with nails pounded or dirt moved during this year.
The American Institute of Architects report ticks off the familiar challenges for construction this year – inflation, supply chain constraints for building materials and labor shortages. But its overall forecast is that “pent-up demand from the pandemic is creating a general spending surge, and construction looks to get its share of the benefits in the next two years.”Â
– Joel Russell