Commercial Property Remodeling in the US Industry Market Research Report from IBISWorld Has Been Updated

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Increased corporate profit will lead more businesses to expand and improve their facilities. For this reason, industry research firm IBISWorld has updated a report on the Commercial Property Remodeling industry in its growing industry report collection.

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Increased interest in environmental sustainability will lead to growth in ecofriendly remodeling, stimulating rising demand for green building renovations and alterations.

Operators in the Commercial Property Remodeling industry have seen demand increase over the five years to 2015 as a result of a decreasing office rental vacancy rate and higher consumer spending. In addition, increasing corporate profit levels have led more businesses to seek remodeling services. With industry clients expanding and growing, they have had greater need for the industry's remodeling services. In 2015, consumer spending and corporate profit are expected to widen 3.1% and 3.4%, respectively, supporting a projected 4.8% increase in revenue for the year.

With decreasing office rental vacancy, commercial property remodeling is on the rise. According to IBISWorld Industry Analyst Omar Khedr, “More new businesses are opening and many existing businesses are expanding, which is creating a growing need for the industry's commercial building addition, alteration and renovation services. This trend has increased the number of industry establishments over the five years to 2015.” Furthermore, with more remodeling contracts to bid on, price competition has decreased, enabling profit margins to widen. Profit margins have also benefited from a greater use of subcontractors on a per-project basis in place of in-house, salaried workers.

In the five years to 2020, the industry is forecast to exhibit steady growth. The office rental vacancy rate will decrease, and consumer spending and corporate profit will increase as the economy continues to grow; this will provide businesses with more discretionary income to spend on industry services. “Additionally, increased interest in environmental sustainability will lead to growth in ecofriendly remodeling, stimulating rising demand for green building renovations and alterations,” says Khedr. However, industry operators will need to be conscious of rising interest rates of commercial loans by which many of the industry's projects are financed, adding extra an extra cost to businesses' remodeling budgets.

For more information, visit IBISWorld’s Commercial Property Remodeling in the US industry report page.

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IBISWorld industry Report Key Topics

This industry primarily remodels construction for commercial buildings. Remodeling construction includes additions, alterations, reconstruction, maintenance and repair work. This industry is composed of general contractors, operative remodelers, remodeling design-build companies and remodeling project construction management firms. This industry does not include residential remodeling.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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