Strictly commercial: A strengthening economy will stimulate demand for industry services

Operators in the Commercial Property Remodeling industry have benefited from large increases in demand through the five years to 2017 as a result of decreasing office rental vacancy rate and higher consumer spending. Additionally, increasing corporate profit levels have led businesses to remodel commercial properties. With industry clients expanding, they have had greater need for the industry's remodeling services. Over the five years to 2022, the industry is forecast to exhibit steady, albeit more modest, growth. The office rental vacancy rate is expected to increase at a slower rate, and consumer spending and corporate profit are both likely to increase amid a growing economy; this will provide businesses with more discretionary income to spend on industry services...purchase to read more.

Industry Statistics & Market Size
Revenue
$29bn
Annual Growth 12-17
11.7%
Forecast Growth 17-22
Profit
Employment
176,560
Businesses
73,212
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • With declining office vacancy rates, commercial property remodeling has grown during the five-year period
  • Many contractors that left the industry during the recession reentered in line with the economic recovery
  • Steady revenue expansion is expected over the next five years
  • Industry Report - Industry Analysis Chapter

    The Commercial Property Remodeling industry has benefited from a rise in commercial construction activity and strong overall economic growth over the past five years. Industry operators began this period at a historically low level due to weak initial downstream demand. However, as the US economy began to pick up steam and corporate profit levels rose, demand for remodeling services quickly rebounded. Businesses responded by expanding or opening new shops altogether, thereby increasing the need for this industry’s remodeling services. Overall, IBISWorld projects industry revenue grew at an annualized rate of 11.7% over the five years to 2017 to reach $28.8 billion. However, an anticipated 29.3% i...purchase to read more.

    Additional Insights for the Commercial Property Remodeling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Property Remodeling Industry are

  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Corporate profit in the Commercial Property Remodeling industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Commercial Property Remodeling Industry?

    This industry primarily undertakes remodeling 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 excludes residential remodeling.

    Industry Products
  • Interior additions and alterations
  • Exterior additions and alterations
  • Systems and equipment
  • Disaster repair
  • Other remodeling services
  • Industry Activities
  • Additions, alterations and renovations of commercial property (e.g. office building, hotel and store)
  • Construction management for commercial property remodeling
  • Fire and flood restoration
  • 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
  • Corporate profit
  • Office rental vacancy
  • National unemployment rate
  • Number of businesses
  • Yield on 10-year Treasury note

  • Current Performance
  • Vacancy and industry trends
  • Increasing margins and transitions
  • Chart: Revenue Growth

  • Industry Outlook
  • Vacancy rates trending downward
  • State of the industry
  • Table: Commercial Property Remodeling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Property Remodeling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Hotels & Motels

  • Key Selling Industries
  • Construction
  • Construction Machinery Manufacturing
  • Electrical Equipment Wholesaling
  • Lumber Wholesaling
  • Metal Wholesaling
  • Ready-Mix Concrete Manufacturing

  • Products & Services
  • Exterior additions and alterations
  • Systems and equipment
  • Interior additions and alterations
  • Other remodeling services
  • Disaster repair
  • Chart: Commercial Property Remodeling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Office buildings
  • Retail buildings
  • Other
  • Lodging
  • Nonresidential farm structures
  • Warehouses and storage
  • Amusement and recreational buildings
  • Chart: Major Market Segmentation for the Commercial Property Remodeling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Property Remodeling

  • Basis of Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Property Remodeling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Property Remodeling 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 Property Remodeling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Office Rental Vacancy (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building Information Modeling (Bim)
  • A digital image of the physical and functional characteristics of a building.
  • Computer-Aided Design
  • The use of computer technology to aid the design and drafting of a product using software tools to create two-dimensional or three-dimensional models.
  • General Contractor (Gc)
  • An individual or company that manages the construction of a building or structure for a property owner or developer. A GC may retain its own labor force or use subcontractors for projects.
  • Green Building
  • Building and remodeling which includes a property's energy efficiency as well as reduces a building's impact on human health and the environment, through better design, construction and maintenance.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial Property Remodeling Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Commercial Property Remodeling industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Property Remodeling:
    • 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 Property Remodeling 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 Property Remodeling, 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