Key Takeaways
- In 2023, the U.S. commercial construction spending reached $1.2 trillion, marking a 7.5% increase from 2022 driven by office and retail sector rebounds.
- Global commercial construction market is expected to grow from $2.67 trillion in 2024 to $3.49 trillion by 2029 at a CAGR of 5.5%.
- U.S. commercial construction put-in-place value hit $217 billion for private nonresidential in Q4 2023, up 12.3% year-over-year.
- U.S. commercial construction employment stood at 8.2 million workers in 2023, up 4.1% from 2022.
- Globally, commercial construction workforce totals 45 million, with 2.5% annual growth projected to 2030.
- U.S. construction labor shortage affected 89% of commercial contractors in 2023 survey.
- Average U.S. commercial construction project cost per square foot rose to $285 in 2023, up 6.2%.
- Steel prices for commercial buildings increased 12.4% YoY to $1,200/ton in Q3 2023.
- U.S. commercial office fit-out costs averaged $210/sq ft in major cities in 2023.
- U.S. issued 450,000 commercial building permits in 2023, up 5.2%.
- Global commercial projects pipeline valued at $8.5 trillion in 2024 starts.
- New York City approved 120 major commercial projects worth $50B in 2023.
- U.S. commercial buildings achieved LEED certification at 25% rate in 2023.
- Global commercial construction embodied carbon reduced 15% via low-carbon concrete in 2023.
- U.S. construction fatalities dropped 5.1% to 1,056 total in 2023.
Global commercial construction is booming with strong growth in spending and employment, though facing cost and labor challenges.
Costs & Pricing
- Average U.S. commercial construction project cost per square foot rose to $285 in 2023, up 6.2%.
- Steel prices for commercial buildings increased 12.4% YoY to $1,200/ton in Q3 2023.
- U.S. commercial office fit-out costs averaged $210/sq ft in major cities in 2023.
- Concrete costs escalated 8.7% to $150/cubic yard for commercial pours in 2023.
- Global commercial construction inflation rate hit 5.9% in 2023 per Turner Index.
- UK commercial project tender prices rose 4.8% to £2,100/m² in Q4 2023.
- Labor costs accounted for 42% of total U.S. commercial project budgets in 2023.
- Retail strip mall construction costs $220/sq ft in U.S. suburbs, up 7.1% in 2023.
- HVAC installation in commercial buildings cost $45/sq ft on average in 2023.
- India commercial office construction costs INR 2,500/sq m, up 10.2% YoY.
- Canada warehouse construction costs CAD 180/sq m, inflation 6.5% in 2023.
- Electrical systems in U.S. commercial projects averaged 15% of total costs at $35/sq ft.
- Australia office tower build costs AUD 4,500/sq m in Sydney 2023.
- Brazil hotel construction costs BRL 3,200/sq m, up 9.4% due to imports.
- Elevator installation in high-rise commercial averaged $150,000/unit in 2023.
- EU commercial roofing costs €120/sq m, up 5.3% with material hikes.
- Saudi mega-project soft costs 25% of budget, totaling SAR 100B in 2023.
- Mexico retail center costs MXN 25,000/sq m, labor up 7.2%.
- Germany facade systems $250/sq m for commercial curtain walls in 2023.
- Plumbing costs in U.S. commercial averaged $20/sq ft, up 6.8%.
- Japan interior fit-out ¥300,000/sq m in Tokyo offices 2023.
- Drywall installation $8/sq ft labor + materials in commercial 2023.
- South Africa warehouse $450/sq m total build cost in 2023.
- UAE luxury retail fit-out AED 5,000/sq m in Dubai 2023.
- Fire suppression systems $12/sq ft in U.S. commercial high-rises.
- UK data center construction £8,000/sq m due to tech specs 2023.
- Parking garage construction $45,000/space structured in U.S. 2023.
Costs & Pricing Interpretation
Employment & Labor
- U.S. commercial construction employment stood at 8.2 million workers in 2023, up 4.1% from 2022.
- Globally, commercial construction workforce totals 45 million, with 2.5% annual growth projected to 2030.
- U.S. construction labor shortage affected 89% of commercial contractors in 2023 survey.
- Average hourly wage for U.S. commercial construction workers reached $32.45 in Q4 2023.
- India commercial construction employs 52 million workers, 12% of total workforce in 2023.
- UK construction sector added 45,000 net new jobs in commercial building in 2023.
- China commercial construction labor force at 120 million, with skilled worker shortage of 30 million.
- Australia commercial construction unemployment rate dropped to 3.2% in 2023.
- Canada hired 120,000 new commercial construction workers in 2023 amid boom.
- 62% of U.S. commercial contractors reported difficulty hiring skilled trades in 2023.
- Brazil construction employment in commercial sector up 6.5% to 2.8 million in 2023.
- EU commercial construction average wage €28/hour, up 5.2% YoY in 2023.
- Saudi Arabia recruited 500,000 foreign workers for commercial projects in 2023.
- Mexico commercial construction jobs grew 4.3% to 1.5 million in 2023.
- Germany construction workforce shortage hit 400,000 skilled workers in 2023.
- Japan commercial construction employment declined 2.1% to 4.2 million due to aging.
- South Africa commercial builders employed 1.2 million, up 3.4% in 2023.
- UAE construction labor force reached 8.5 million, 90% expatriates in commercial.
- 75% of Australian commercial firms faced labor shortages in project managers in 2023.
- France added 25,000 commercial construction jobs in 2023.
- Italy construction employment steady at 2.1 million, with 10% in commercial.
- Russia commercial construction workers totaled 3.5 million, up 3.8%.
- Singapore hired 40,000 new construction workers for commercial in 2023.
- Turkey commercial sector employed 1.8 million, wage inflation 45% in 2023.
- Spain construction jobs in commercial up 5.6% to 900,000 in 2023.
- Netherlands commercial construction labor productivity up 2.4% with 450,000 workers.
Employment & Labor Interpretation
Market Size & Growth
- In 2023, the U.S. commercial construction spending reached $1.2 trillion, marking a 7.5% increase from 2022 driven by office and retail sector rebounds.
- Global commercial construction market is expected to grow from $2.67 trillion in 2024 to $3.49 trillion by 2029 at a CAGR of 5.5%.
- U.S. commercial construction put-in-place value hit $217 billion for private nonresidential in Q4 2023, up 12.3% year-over-year.
- Asia-Pacific commercial construction market dominated with 38.2% revenue share in 2023 due to urbanization in China and India.
- European commercial construction sector projected to grow at 4.2% CAGR from 2024-2028, fueled by sustainable office developments.
- U.S. retail construction spending increased by 9.8% to $58.4 billion in 2023.
- Middle East commercial construction market valued at $250 billion in 2023, with 6.1% CAGR forecast to 2030.
- Canadian commercial construction output grew 5.7% in 2023 to CAD 120 billion.
- Latin America commercial construction market to reach $450 billion by 2028 at 4.8% CAGR.
- U.S. office construction spending rose 11.2% to $45.6 billion in 2023.
- Indian commercial construction sector valued at INR 8.5 trillion in FY2023, growing 8.2% YoY.
- UK commercial construction output increased 4.1% in 2023 to £110 billion.
- Australian commercial building work rose 6.3% to AUD 75 billion in 2023.
- Brazil commercial construction market grew 5.4% to BRL 300 billion in 2023.
- Global warehouse construction segment expected to grow at 7.2% CAGR to $1.1 trillion by 2030.
- U.S. healthcare construction spending hit $120 billion in 2023, up 8.9%.
- China commercial real estate construction valued at CNY 15 trillion in 2023.
- South Africa commercial construction grew 3.8% to ZAR 250 billion in 2023.
- Mexico commercial construction market to expand at 5.1% CAGR to $150 billion by 2029.
- Japan office construction spending increased 4.5% to JPY 4 trillion in FY2023.
- France commercial construction output rose 3.2% to €85 billion in 2023.
- Germany non-residential construction grew 2.9% to €180 billion in 2023.
- Saudi Arabia commercial construction market valued at SAR 400 billion in 2023.
- Singapore commercial construction contracts awarded totaled SGD 12 billion in 2023.
- UAE hospitality construction spending reached AED 100 billion in 2023.
- Turkey commercial construction grew 7.1% to TRY 2.5 trillion in 2023.
- Russia non-residential construction volume up 4.6% to RUB 8 trillion in 2023.
- Italy commercial construction market expanded 3.7% to €70 billion in 2023.
- Spain office and retail construction rose 5.2% to €40 billion in 2023.
- Netherlands commercial building permits value increased 4.8% to €25 billion in 2023.
Market Size & Growth Interpretation
Projects & Permits
- U.S. issued 450,000 commercial building permits in 2023, up 5.2%.
- Global commercial projects pipeline valued at $8.5 trillion in 2024 starts.
- New York City approved 120 major commercial projects worth $50B in 2023.
- U.S. office completions totaled 75 million sq ft in 2023.
- China started 2,500 commercial buildings over 20 stories in 2023.
- UK granted 15,000 commercial planning permissions, £200B value.
- Canada commercial starts up 8.4% to 1,200 projects in Q4 2023.
- Australia approved 4,500 commercial developments, AUD 60B in 2023.
- India issued permits for 10,000 malls and offices totaling 500M sq ft.
- Brazil commercial construction starts rose 7.1% to 8,000 sites.
- EU warehouse permits surged 22% to 300 million sq m pipeline.
- Saudi Vision 2030 commercial projects 1,200 active, $300B value.
- Mexico hotel permits 450 new, 100,000 rooms planned 2023-2025.
- Germany issued 12,000 non-residential permits, €150B volume.
- Japan commercial floor space approvals 45M sq m in FY2023.
- South Africa commercial permits up 4.2% to 2,500 approvals.
- UAE Dubai approved 300 skyscrapers commercial mixed-use 2023.
- France Paris commercial permits for Olympics legacy $20B.
- Italy Milan Expo follow-on commercial 50 projects started.
- Russia Moscow new office space 3M sq m permitted 2023.
- Singapore commercial plot tenders 20 awarded, SGD 15B.
- Turkey Istanbul mega-malls 15 new permits, 2M sq m.
- Spain Barcelona hotel conversions 100 approved 2023.
- Netherlands Amsterdam office retrofits 500 permits issued.
Projects & Permits Interpretation
Sustainability & Safety
- U.S. commercial buildings achieved LEED certification at 25% rate in 2023.
- Global commercial construction embodied carbon reduced 15% via low-carbon concrete in 2023.
- U.S. construction fatalities dropped 5.1% to 1,056 total in 2023.
- 45% of new EU commercial projects net-zero ready by 2023 standards.
- UK commercial sites zero-waste-to-landfill at 68% compliance in 2023.
- Solar PV installed on U.S. commercial roofs reached 12 GW in 2023.
- India green commercial buildings grew 20% to 1,200 certified in 2023.
- Australia commercial energy use down 12% with LED retrofits 2023.
- OSHA recordable incidents in commercial construction fell to 2.8 per 100 workers.
- China mandated 30% green materials in commercial builds from 2023.
- Canada commercial timber use up 25% for mass timber projects 2023.
- Brazil recycled 55% construction waste in commercial sites 2023.
- Saudi NEOM project 100% renewable energy target for commercial zones.
- Germany Passivhaus commercial certifications doubled to 400 in 2023.
- Japan seismic retrofits in commercial buildings 85% compliant 2023.
- South Africa EDGE certified commercial projects 300 new in 2023.
- UAE Estidama Pearl rating average 2.5 for commercial in Abu Dhabi.
- France RE2020 standards applied to 90% new commercial starts 2023.
- Italy commercial water savings 40% via greywater systems average.
- Russia energy efficiency class A+ in 35% commercial newbuilds 2023.
- Singapore Green Mark Platinum for 50% commercial completions 2023.
- Turkey commercial solar adoption 15% rooftops equipped 2023.
- Spain BREEAM certified 200 commercial projects in 2023.
- Netherlands 70% commercial roofs greenified or solarized by 2023.
Sustainability & Safety Interpretation
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