Like we saw with residential remodeling, it appears as though commercial remodeling activity is less volatile than new construction activity.
Austin, TX (PRWEB) November 03, 2016
BuildFax, the leader in property condition insights for commercial and residential real estate, has announced today a new study which uncovers a new norm for commercial construction activity. The research looks at commercial new construction and commercial remodels over the course of the Great Recession.
Additions, remodels, and alterations (ARAs) on commercial structures took a meager dip after the construction market downturn when compared to new commercial construction permits. The decline of new commercial construction permits was significantly deeper, plummeting 39% after 2008 and continuing its slump through 2011.
The new numbers reveal:
- New commercial construction permits took a dramatic plunge of 39% after 2008 and are still at 20% below pre-crisis peaks.
- Commercial remodeling permits took less of a hit with just a 9.7% dip after 2008, and gained ground by 3% in 2013; they’re currently sitting at just .7% below pre-crisis peaks.
“Commercial remodeling has stayed on its upward trajectory,” said Holly Tachovsky, CEO at BuildFax, “except for the small dip that we see during the construction downturn. On the other hand, commercial new construction saw a substantial downtrend that lasted for three years, and still remains below pre-crisis levels. Like we saw with residential remodeling, it appears as though commercial remodeling activity is less volatile than new construction activity.”
BuildFax is trusted by the biggest insurance and financial companies in the world to deliver deep insight into property decisions, delivering unparalleled insight straight from the source – its massive database of over 23 billion data points of building and remodeling records.