6 Commercial Construction Trends We Expect to See in 2018
Those in the commercial construction field are cautiously optimistic about growth in 2018. At ECL Software, we’re excited to see how things work out. We’ve looked at some of the top advisors to see what they say the 2018 commercial construction trends will be. Read on to learn more and then check out some unique construction software that could change the way you complete your construction projects.
- Signs point to retail bankruptcies slowing
- Multifamily construction is predicted to remain near cyclical peak
- Deal volume will pick up
- Industrial construction is going to excel
- Office square foot will decline
- Connectivity will continue to be a priority
Moody’s says that retail bankruptcies appear to be on the decline in their estimates for 2018. They believe that the retail sector’s operating income will move up to 4.5% from 3.5% and that sales will jump too.
Yardi Matrix, a commercial real estate data firm, says that the construction delays that kept 2017’s multifamily construction estimates from being met won’t be as much of an issue in 2018. They believe that more than a quarter million units will be completed between the beginning and end of 2018.
For a number of reasons, transaction volume saw a direct hit after President Trump took office. Part of the issue was due to the bid-ask spread being widened as a result of doubts about the cycle on the buy-side. It looks as though this gap is going to be closing in 2018, in large part due to the fact that seller are going to be willing to accept this paradigm.
There’s no question that industrial construction was the hot commodity in this sector in 2017 and this is expected to continue. Largely a result of the fact that increasingly profitable e-commerce providers need distribution and warehouse centers near urban metros, and partially due to the fact that there are record-low vacancies in these facilities, developers have more than 215 square feet of industrial construction on line for 2018.
As has been true of the last five years, the amount of square feet office occupiers will be taking on will decrease. Companies want to keep overhead down, and more people are either working from home or co-working. As a result, even law firms are less likely to use Class-A office space.
Companies of all types need ways to stay seamlessly in touch. Whether it’s a day trader or a call center, an e-commerce seller or a web developer, spotty connectivity can cost a company a lot of money. As of 2017, about 75% of companies say that poor internet connectivity has resulted in a loss of business. Companies who are serious about getting and retaining tenants will have to find a way around this.
Staying in touch with everyone within a company is important for construction personnel too. The good news is that JDIO is here. Short for “just do it once,” this software is exactly what the construction industry needs. Learn more by getting in touch with ECL Software or visiting our website.