We are currently on our way out of a terrible economy. The housing market and commercial construction markets have suffered dearly over the last decade. Things were even worse when the housing market collapsed in 2008 and we immediately went into a credit crisis. New commercial construction had suddenly become a thing of the past.
Now we are at a crossroads. The commercial construction forecast tells us that we are looking at a promising new beginning. There are a number of reasons why commercial construction should approve throughout 2014 and 2015 as well. We would like to provide some important insight into the reasons why these improvements are right on the horizon.
Sit back, relax and find out more right now.
A Stabilizing Economy
First off, it’s important to mention that we are finally starting to experience a stabilizing economy. For the longest time it was difficult to tell if the economy was actually improving or not. But we’ve seen steady growth in the stock market for many years in a row now, and the housing market began to slowly but surely improve and made great leaps and bounds in 2012 and 2013 and continued right into 2014.
Not only that, but the job market is also improving as well as. These are all signs that the economy is a stabilizing. This is only a good thing for the construction industry and commercial real estate.
As you can imagine, the more the economy improves and begins to stabilize, the more need for commercial construction. We’ve reached a tipping point that shows us promising new data.
Non-Residential Construction Growth
It’s quite obvious that non-residential construction growth will improve once the economy stabilizes and people are no longer afraid to spend the money that they have saved. The fear that we experienced back in 2008 and 2009 is no longer there. You do not have to feel like the world is coming to an end. This is great for non-residential construction growth.
People are starting to see that they can open new businesses. People are starting to see that they can take a chance and try something new. Many times this will require commercial construction. That’s the reason why non-residential construction is on the rise.
Declining Office and Retail Vacancies
Again, since the economy is beginning to stabilize we are seeing less vacancy in office and retail space. Businesses are beginning to improve, and they are making a profit so they can easily afford their rents and leases.
Since office space and retail space is on the decline, there is a need for more of it. This will also help to spur the commercial construction growth.
Increased Construction Spending
Finally, when you combine all of the things that we’ve mentioned already it all adds up to increased construction spending. There is a need for more commercial construction space, so developers are starting to spend money to build up new and existing projects. All of this combines for a promising commercial construction forecast. Let’s hear it for continued growth!