Commercial Constructions Trends to Watch in 2010
I don’t have a crystal ball, nor am I a betting man, but based on the commercial construction projects Englewood Construction has heard are in the pipeline for 2010 across the country, as well as my 30+ years of combined experience in the design build and commercial construction industry, here’s what I think will be happening in our industry next year.
1. Back on Track. Call me an optimist, but with unemployment leveling off and consumer confidence gaining ground, all signs point to businesses getting back on track next year. At this time last year, there were very few construction projects to bid on as many companies sat on the sidelines. Now, they’re opening their playbooks and gearing up for 2010. While ground-up work should be stronger in 2010 than 2009, most companies will still be watching their bottom line closely. Look for a solid increase in commercial construction renovations verses new locations, which should hold especially true with new retail construction.
2. Green is Gold. Green buildings across all commercial construction sectors will continue to gain in popularity. And it’s not just that more projects will be built with sustainable construction materials (bamboo flooring, energy-efficient lighting and low-VOC paints) as they seek out LEED status, but expect a rise in commercial buildings that serve the green industry, too. According to the Dec. issue of Shopping Center Business, Go Green Stations, a new alternative fuel distributor, is planning approximately 1,000 stores in 2010, compared to 100 in 2009. Going green also allows building owners to take advantage of energy efficient commercial building tax deductions.
3. Franchise on the Rise. The loss of jobs over the past year led many to cash in their 401Ks and become their own boss by starting a franchise. Expect to see increased commercial construction franchise work in 2010, particularly in food service. According to retailerdaily.com, a number of companies that previously only had store-owned locations are now looking to add franchised operations to their roster, such as Corner Bakery Café and Smashburger. In an ironic twist, Vermont, the maple syrup state, was the only state without an IHOP location until a franchise development came into play.
4. Outside the Big Box. Expect to see new innovation in store concepts, especially when it comes to capitalizing on vacated commercial space in prime locations. Short-term holiday stores certainly popped up en masse in 2009, although they involved little design build construction. In 2010, we should see more creative re-use of empty commercial space, which means shopping center and retail construction renovation should increase, as well as office and industrial construction. For example, America Public Media notes how an old CompUSA store was converted into an animal hospital.
5. Less is Still More. Even though there should be more construction projects in 2010, those projects will probably be smaller in size than previous years as owners continue to look for efficiencies in cost and square footage. And as stated in No. 4, seasonal stores that require short-term leases and less construction will still be hot in 2010.
What do you think 2010 holds in store for the commercial construction industry? I’d love to hear your thoughts at bill.disanto@englewoodconstruction.com.
Bill Di Santo
President
Tel: 847-233-9200 x710
Questions? Comments? You can reach me at bill.disanto@englewoodconstruction.com