Cincinnati, Northern Kentucky Construction Expected To Slow in 2009
The recent strong construction market in Greater Cincinnati and Northern Kentucky will likely stall in 2009 according to local industry experts. The Cincinnati Enquirer reports that “at least $750 Million in planned projects have been sidelined indefinitely.” Bank lending requirements are contributing to the slowdown. According to the Cincinnati Enquirer, banks that were requiring as little as 20% down and 50% pre-leasing are now requiring as much as 60 – 70% in pre-lease commitments and 30-40% in down payments. Joe Hummel, Executive Director of Allied Construction Industries, reports that the region is forecast to see a 12 – 25% decline in new development next year.
On the positive side, the slowdown in construction is helping to bring down construction material costs, as prices for asphalt, concrete, steel, drywall, and other materials have been declining. Thus, at least from a cost perspective, now is a good time to be building.
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C. Michael Shull, III focuses his practice on construction law and litigation. Michael's client representations range from casinos and ENR Top 400 contractors to design firms and subcontractors.