Commercial construction remains steady despite recent credit downgrade

Jobs in the commercial construction industry appear to be untouched by S.& P.'s recent credit downgrade of U.S. debt.

The New York Observer reports that nonresidential constructions employment remain virtually unchanged in July, increasing by approximately 2,100 jobs, while speciality contractors added more than 8,100 positions. The news agency said the figures indicate stability within the sector, but it still is not on the road to a total rebound.

Meanwhile, New Jersey officials have announced one of the biggest commercial real estate transactions in state history.

The Boston Globe reports that the Massachusetts-based Intercontinental Real Estate Corporation has signed a $215 million development deal with New Jersey to renovate an office complex in Plainsboro into the new U.S. headquarters of Danish pharmaceutical giant Novo Nordisk.

Intercontinental chief executive Peter Palandjian told the news source the agreement is a good sign that the overall construction industry is heading in the right direction.

"This transaction is certainly a signal that banks, both domestic and international, have faith in the commercial markets coming back," Palandjian noted.

The company said it will invest funds in the project from the Northeast Regional Council of Carpenters. The deal is expected to create approximately 500 construction jobs.