The Great Recession had a negative effect on many industries, construction included. As many companies lost money, people began to get laid off. Jobs were hard to come by, and subsequently, demand for office space declined.
Fortunately, the last few years, and the last few months in particular, have brought the nation’s economy back to healthier levels. In August, The Bureau of Labor Statistics reported 151,000 nonfarm jobs were added and the unemployment rate stayed at a strong 4.9 percent. This followed a strong July when 255,000 jobs were added, surprising the many industry experts who predicted the number to be closer to 180,000.
As more jobs have opened up, demand for office and commercial space has increased, giving the construction industry something to celebrate. According to the National Association of Realtors, the next year will a see decreases of:
- 1.5 percent in office vacancy
- 0.7 percent in industrial space vacancy
- 1 percent in available retail space
As demand increases, supply will wane and push prices upward. The cost for commercial space already increased 5.3 percent in the second quarter of 2016 compared to the same time in 2015. As a result, there will be greater need for new construction for the commercial sector.
Metro Areas See Spike in Construction
Research from Dodge Data & Analytics showed that commercial construction starts increased in many metropolitan areas during the first half of the year, including:
- San Francisco construction spend grew 128 percent
- Atlanta construction spend grew 69 percent
- Los Angeles construction spend grew 62 percent
- Chicago construction spend grew 37 percent
- Boston construction spend grew 31 percent
NAR pointed out that as commercial space in metro areas gets filled or as the prices continue to creep up, activity in smaller markets will begin to increase.
Demand is expected to continue, so various parts of the country will likely see developments being made. Retail construction will be necessary for shops to open in new areas, and office construction will allow companies to expand and hire new people.
As these trends continue, builders will need to ensure they keep their construction equipment safe from vandals and inclement weather. Mobile Mini’s secure construction containers will able to keep all equipment and materials dry in rainy weather, and their patented Tri-cam locking system will keep items out of the hands of unauthorized people.