The office market sector is nearly stagnant as architectural firms focus on navigating a complex economic environment, the first quarter market report from the American Institute of Architects Iowa Chapter showed.

The report, released Monday, showed that there was very little movement in the office sector, with 55% of respondents identifying it as the slowest.

The report provides insights into the current climate of the architecture profession, a leading indicator in the construction market for the next nine to 12 months. It is compiled from survey responses from architecture firms across the state.

Jessica Reinert, AIA Iowa executive director, said the report “paints a picture of both challenges and opportunities.”

“The report indicates that concerns over the overall economy, labor prices and rising interest rates are paramount,” Reinert said in a news release. “The data underscores the need for firms to be versatile in their practice and project approach thus opening the door to new opportunities through diversification.”

Other highlights from the first quarter report include:

• 82% of active projects this quarter took place in-state compared to 18% out-of-state. This is a new metric requested by survey respondents.
• Business, Commercial, and Industrial client types saw a noticeable increase in the share of active projects, accounting for 23% of all work.