Architectural Services NAICS 541310

Mar 23, 2026 - Nonresidential Building Starts Increase

• The total value of nonresidential building construction starts increased 17.6% in February 2026 from January, according to Dodge Construction Network. Driven by strong office and data center activity, commercial starts jumped 48.5%. However, other commercial construction segments saw declines in starts, including parking garages (down 23.1%), warehouses (-12.1%), hotels (-7.9%), and stores (-4.7%). Led by educational projects, institutional starts increased 8.7%, despite a significant decline in healthcare starts. Dodge’s associate director of forecasting Sarah Martin said, "After a weak start to the year, nonresidential and residential building starts steadily rebounded throughout February. Conversely, nonbuilding activity slowed down last month – normalizing from elevated levels in January."
• A new study by the American Institute of Architects highlights a shift in how architects engage with building product manufacturers, signaling potential changes across the construction and design ecosystem, according to Architect Magazine. While 73% of architects value involvement in product development, only 24% want direct participation, reflecting caution around liability and time constraints. At the same time, 79% now integrate or recommend sustainable solutions, up from 58% in 2020, making sustainability a baseline expectation. Architects are also placing greater emphasis on data transparency, digital tools, and collaboration when evaluating products. Additionally, 72% prefer US-manufactured materials due to supply chain reliability and performance considerations. The findings suggest architects are seeking greater influence over product innovation and selection, which could reshape how manufacturers develop, market, and support building products.

• Demand for building design services showed signs of stabilizing in February after several months of decline, according to a March report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 49.4 compared to January's reading of 43.8. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 52.3 in February from 49.3 in January, and the new design contracts index increased to 48.0 from 42.7. The AIA's Chief Economist Richard Branch said, "While the ABI data shows some positive trends, the broader economy continues to struggle, with unemployment increasing in February. However, architectural services employment remained steady in January at 204,600, up nearly 2,000 positions from a year ago."
• North American construction and engineering spending in 2026 is expected to grow by 1% after decreasing an estimated 1% in 2025, according to FMI’s first-quarter 2026 North American Engineering and Construction Outlook. Nonresidential building construction spending in 2026 is expected to be flat after decreasing an estimated 2% in 2025. Data centers will post spending growth of 23% in 2026 amid high demand for AI, but that will be offset by weakness in other nonresidential building segments, including warehouse (spending down 5% in 2026), commercial (-4%), lodging (-2%), and education (0%). The office market remains pressured by a record-high vacancy rate of 21%, according to Moody's Analytics. Healthcare construction spending is forecast to rise 3% in 2026 amid large hospital projects in several major metros. High mortgage interest rates and affordability constraints will contribute to a 5% decline in 2026 single-family construction spending. Supply gluts in some metro areas and tepid rent growth will reduce multifamily spending by 9% in 2026.