High rise: Increasing corporate profit and decreased office vacancy rates will boost demand

Despite tepid statewide economic growth, the Commercial Building Construction industry in New York has flourished over the five years to 2017, amid low borrowing costs, rising consumer demand and a growing number of businesses. Over the five years to 2022, downstream demand is anticipated to remain strong and corporate profit is anticipated to increase, which will encourage the private sector to invest in new commercial space. Coupled with decreasing office vacancy rates, these factors are expected to cause industry revenue to increase over the five-year period...read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 12-17
10.3%
Forecast Growth 17-22
Profit
Employment
13,874
Businesses
2,371

Industry Threats & Opportunities

  • Anticipated increases in corporate profit will encourage the private sector to invest in new commercial space
  • Strong corporate profit and increased consumer spending encouraged new businesses to open
  • With continued economic growth, the unemployment rate is projected to steadily fall
  • Industry Report - Industry Investment Chapter

    The Commercial Building Construction industry in New York has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the average operator spends $0.09 in capital investment. While wages only account for an estimated 5.1% of total revenue, the industry's depreciation costs (a proxy of capital investment) are also very low, consuming only 0.5% of revenue. General contractors rarely own whatever heavy equipment is used during construction; rather, heavy equipment and machinery are either rented or owned by subcontractors. Depreciable assets purchased in the industry are typically limited to transportation and office equipment, including computers and computer-aided design software...purchase to read more.

    Additional Insights for the Commercial Building Construction in New York Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Building Construction in New York Industry are

  • Access to highly skilled workforce
  • Ability to negotiate successfully with regulator
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Consumer Spending in New York and Number of Businesses in New York in the Commercial Building Construction in New York industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Commercial Building Construction in New York Industry?

    This industry includes companies primarily responsible for work on the construction (i.e. new construction, additions, alterations, maintenance and repairs) of office, retail, hotel, agricultural and entertainment buildings. Participants are general contractors or project managers. This industry excludes institutional buildings (e.g. hospitals and schools), heavy industrial buildings (e.g. factories and power plants) or infrastructure (e.g. communications towers or oil pipelines).

    Industry Products
  • Design, bid, build contracts
  • Design-build contracts
  • Integrated product delivery
  • Construction management agency
  • Construction manager at-risk
  • Industry Activities
  • Office building construction
  • Hotel and motel construction
  • Restaurant, cafe and bar construction
  • Retail store construction
  • Shopping center or shopping mall construction
  • Commercial warehouse construction
  • Service and gas station construction
  • Auto service and sales store construction
  • Entertainment and recreation building construction (e.g. casinos, gyms, cinemas and arenas)
  • Radio and television broadcast studio construction
  • Similar Industries
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Heavy Engineering Construction
  • Commercial Leasing
  • Architects
  • Municipal Building Construction
  • Industrial Building Construction in California
  • Commercial Building Construction in California
  • Industrial Building Construction in New York
  • Industrial Building Construction in Illinois
  • Commercial Building Construction in Illinois
  • Industrial Building Construction in Texas
  • Commercial Building Construction in Texas
  • Industrial Building Construction in Florida
  • Commercial Building Construction in Florida
  • Commercial Building Construction in Massachusetts
  • Industrial Building Construction in Ohio
  • Commercial Building Construction in Ohio
  • Industrial Building Construction in Pennsylvania
  • Commercial Building Construction in Pennsylvania
  • Commercial Building Construction in New Jersey
  • Industrial Building Construction in Georgia
  • Commercial Building Construction in Georgia
  • Industrial Building Construction in Michigan
  • Commercial Building Construction in Michigan
  • Industrial Building Construction in Wisconsin
  • Commercial Building Construction in Wisconsin
  • Industrial Building Construction in Washington
  • Commercial Building Construction in Washington
  • Industrial Building Construction in Virginia
  • Commercial Building Construction in Virginia
  • Industrial Building Construction in Tennessee
  • Commercial Building Construction in Tennessee
  • Industrial Building Construction in Missouri
  • Commercial Building Construction in Missouri
  • Industrial Building Construction in North Carolina
  • Commercial Building Construction in North Carolina
  • Commercial Building Construction in Minnesota
  • Commercial Building Construction in Maryland
  • Industrial Building Construction in Colorado
  • Commercial Building Construction in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Spending in New York
  • Number of Businesses in New York
  • Value of private nonresidential construction in New York
  • Yield on 10-year Treasury note

  • Current Performance
  • Gaining momentum
  • Late bloomer
  • Industry structure and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased consumer and business spending
  • Industry profit and employment
  • Contracts and convergence
  • Table: Commercial Building Construction in New York Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Building Construction in New York Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Gas Stations with Convenience Stores
  • Department Stores
  • Real Estate Investment Trusts
  • Amusement Parks
  • Hotels & Motels

  • Key Selling Industries
  • Cement Manufacturing
  • Construction & Mining Equipment Wholesaling
  • Glass Product Manufacturing
  • Iron & Steel Manufacturing
  • Property, Casualty and Direct Insurance

  • Products & Services
  • Construction manager at-risk
  • Design, bid, build contracts
  • Construction management agency
  • Design-build contracts
  • Integrated product delivery
  • Chart: Commercial Building Construction in New York Industry Products and Services Segmentation

  • Major Markets
  • Office buildings
  • Retail buildings
  • Lodging
  • Warehouses and storage
  • Amusement and recreational buildings
  • Chart: Major Market Segmentation for the Commercial Building Construction in New York Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Building Construction in New York

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Building Construction in New York Industry

  • AECOM, Lend Lease Corporation Limited, Turner Construction Company, Tutor Perini Corporation,
  • Table: AECOM - financial performance
  • Table: Lend Lease Corporation Limited - financial performance
  • Table: Turner Construction Company - financial performance
  • Table: Tutor Perini Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Building Construction in New York Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Building Construction in New York Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of Private Nonresidential Construction in New York (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computer-Aided Design (Cad)
  • The use of computer technology to aid the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • Developer
  • An enterprise that prepares a real estate site for residential or commercial use. A developer raises capital, gains zoning approvals and hires contractors to design, construct and develop property.
  • General Contractor (Gc)
  • Also called a prime contractor. An individual or company that manages the construction of a structure for a property owner or developer. A GC may retain a labor force or use subcontractors.
  • Write Down
  • To deliberately reduce the value of an asset to reflect its current market value.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Commercial Building Construction in New York can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Building Construction in New York:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Building Construction in New York market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Building Construction in New York, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear