5 Common Types of Commercial Construction Project

With more than $10T spent on goods and services and more than 10 million workers, the U.S. construction market is one of the largest in the world. And there are a variety of commercial construction projects from government and industrial to office and retail. Each requiring a specific skill set to bring a project to successful delivery. When hiring a general contractor for your project, it is a good idea to select a firm that has experience with the type of construction you are planning to build. These are the 5 common types of commercial construction projects we frequently work with our clients at New Horizons Construction Services:

Multi-Unit Residential

The multi-unit residential sector is one of the fastest growing segments of the commercial construction market. There are a variety of multi-unit residential buildings including high rise buildings, mid-rise apartments and condos, and townhomes, for example. Much of the multi-unit residential construction is centered in major urban centers creating a live-work-play community. In these communities, multi-unit residential buildings reserve the ground floor for commercial establishments with residents living on the upper floors. More than 600,000 new units are expected to be delivered over the next five years, according to Multifamily Executive magazine. Miami, Denver, and Houston are among the top cities in the nation with the highest demand for new multi-unit residential construction.

Office Buildings

Office buildings are categorized into three classifications as defined by the Building Managers and Owners Association (BMOA). Class A office buildings are prime properties that offer the best quality construction, location, amenities and features that attract the highest rents in the area. They were usually built or completely renovated within the past 15 years. Class B office buildings are older properties with good amenities and features that attract value-oriented tenants. Class C office buildings are generally functionally obsolete and in need of extensive remodeling or renovation. Many investors purchase Class C office buildings for renovation into a Class A property.

Retail

Perhaps, no commercial construction segment has undergone as much change in the past 20 years as retail. Malls, shopping centers, department stores, and stand-alone retailers are adapting to changing consumer demands with an emphasis on delivering a personalized shopping experience. As a result, commercial developers are renovating existing malls and shopping centers with plenty of open space, natural lighting, and technology. Also, new mixed-use retail centers are being constructed as open-air, pedestrian-friendly developments. These mixed-used developments often have retail, dining, shopping, office and residential units with a neighborhood vibe.

Government

Schools, civic centers, and state, federal and municipal buildings are all examples of government construction. Government construction spending is on the rise with an emphasis on homeland security, infrastructure improvements and school safety. This will lead to renovations and new construction for court facilities, schools and health, and human services offices. Also, municipalities across the country have their own capital improvement and redevelopment and revitalization priorities. For example, the Atlanta-Fulton Library System is renovating its downtown central library and 23 branches throughout Atlanta that will create a modern library environment to meet the needs of its local communities well into the future.

Industrial

Industrial buildings like power plants, water treatment facilities, manufacturing facilities, and warehouses, for instance, generally employ highly skilled workers with a technical or engineering background. The $20B sector is poised to grow 5% annually with an emphasis on advanced technologies, according to Deloitte Consulting LLP. There are more than 50 industrial projects in Louisiana alone, including the construction of Port Cameron, a new state-of-the-art deep-water port being built along the Gulf of Mexico in Southwest Louisiana.