Increased interest in environmental sustainability will lead to growth in ecofriendly remodeling, stimulating rising demand for green building renovations and alterations.
New York, NY (PRWEB) April 24, 2015
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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