REBusinessOnline just published a reader survey on the future of lifestyle centers, also known as mixed-use or multi-use, and the consensus is that the sector is still strong, although 20 percent of those surveyed believe there is a danger of overbuilding. Three-fourths said there is demand for more lifestyle centers in their region, but many commented that developers should proceed with caution to get the right site, a solid anchor and the right mix of tenants.

Valuation of A/E firms is at the highest point in years according to ZweigWhite’s 2007 Valuation Survey of Architecture, Engineering, Planning & Environmental Consulting Firms. The survey shows that value per employee at A/E firms has increased annually for the last 10 years. This year, the median value per employee reached an all-time high of $43,590, a 50% increase since 1998.

If you’re worried about the impact of interest rates on real estate this year, you have good company.

REBusinessOnline.com asked readers which they thought would have the greatest impact on the industry in 2007 - interest rates, energy costs, war or security. More than 68% believe interest rates will have more of an impact on the industry than energy costs (19%), war (6%) and security (6%). Readers generally agree on the correlation: rising interest rates will have a negative effect while falling or stable rates will have a positive effect.

Some readers introduced their own concerns, among them insurance costs, construction costs, taxes, job security and the economy.

The economy will support growth in the construction industry in 2007, although it will slow gradually over the year, according to Jim Haughey, director of Research and Analytics for Reed. Haughey’s detailed review of construction growth in various sectors and his projections for 2007 was published in Building Design & Construction.

Spending on nonresidential construction expanded by 16% during the year ending September, but has currently slowed to 11-12% and will slow further to 8% by the end of 2007. The slowdown results from the plunge in residential building last year and the slowdown in overall economic growth due to cautious consumer spending.

2006 quick stats:

• The condo market plunged more than the single-family market
• Shopping center expansion continued
• Office construction spending surged last summer, up 11%
• Manufacturing construction spending jumped 20%
• Hotel construction soared 52%
• Education construction spending increased 6.5% with all gains near the end of the year
• Healthcare construction spending growth doubled to 15%

Mixed-use fever shows no signs of cooling, according to a survey published in Building + Design magazine. The Fall 2006 survey of development execs, conducted by National Real Estate Investor and Retail Traffic magazines, showed that mixed-use was the dominant retail property type for both new development and redevelopment projects over the previous 12 months.

Here are the stats:

• 28% of respondents developed mixed-use properties during the last 12 months.
• 28% developed freestanding/single-tenant properties.
• 25% developed non grocery-anchored strip centers
• 18% developed lifestyle centers.

Mixed-use projects ranked even higher in developers’ future plans. Fifty-two percent plan to develop mixed-use properties, followed by freestanding, single-tenant properties (36%), non-grocery-anchored strip centers (32%), grocery-anchored strip centers (30%), downtown urban centers (29%), and lifestyle centers (28%).

The reasons? More people want to live - and shop - in urban areas where the action is. And the rising cost and availability of greenfield sites is prompting developers to consider in-fill in urban areas. Also, communities increasingly want “smart-growth” projects that minimize sprawl and create a live-work-play environment.

According to Reed Construction Data, the construction material price index dropped 1.4% in September, the first significant decline in the past three years, and prices are expected to continue to decline through the end of 2006. Building Design & Construction reported that a sharp drop in crude oil prices and less demand from international markets and homebuilders led manufacturers and distributors to discount their prices on unexpected surplus inventory. But the price index is expected to rise in early 2007, when inventories have been cleared.