While we are still not achieving the national construction numbers we put up during the construction boom or the early- to mid-2000s, the market for commercial construction is the strongest it has been in years. The total value of office construction increased by 2.6% in the month of November alone and increased by 5.6% in total since this time last year. Construction starts increased by 26% in November, but the majority of this increase is represented across just a few new office developments, including the Transbay Tower in San Fran, the State Farm campus in Tempe, and the office portion of the Korean Air Hotel project in LA. Other large office projects that broke ground in 2013 include Amazon’s new campus in Seattle, The BHP Billiton Tower in Houston, the State Farm campus in Richardson, TX, Samsung’s ten-story HQ in San Jose, Exxon Mobil’s enormous campus in Houston, and Facebook’s campus in Menlo Park, CA.
Increased activity in the commercial market is beginning to encourage new development, and as investor confidence continues to increase in primary and secondary markets across the US we will see a rise in the number of commercial developments breaking ground. 2014 already has a more optimistic outlook than 2013 did – last year, investor confidence was kept down by the upheaval in Congress over the deficit and other budget concerns. An agreement has been reach (for the time being), which will eliminate some of the concerns in 2014 that we had in 2013.Share