Cicero’s Development places a great emphasis on the work we do in the hospitality industry. However, we perform a decent amount of work in the commercial property construction and renovation industries as well. So what is the current state of this industry?
First off, as we all know at this point, the economic recession forced many businesses to close their doors. As a result, even when the rest of the economy was bouncing back, it was a slow recovery and not many firms had the luxury of spending money on renovations or repairs to existing buildings. Also, many new builds en route to being finished were placed on hold until the investing firm could raise the capital to complete the construction, and some properties were even abandoned, remaining unfinished to this day. The construction and renovation industries were the final ones to bounce back, after recovery began, but they bounced back stronger than ever.
Prior to the recession, this industry became diluted with a plethora of contractors and construction companies, mostly because of the demand of commercial propertyrenters and owners. With property values soaring, interest rates so low that you hadto come up with an excuse NOT to purchase property, and banks who would not look twice at a business’s credit history before signing off on a loan, all of these factors culminated into the perfect storm of bad situations that, in retrospect, everyone should have seen coming. Then one day the bubble burst. Many contractors and vendors were so caught up in the sheer volume of work at the time that most did not account for the sudden drop off.
The companies who did make it through the dark times, are now reaping the benefits after the market thinned out. Many companies are taking advantage of fallen property prices and investing now in expansion. Many new types of companies outside of the renovation and construction industries have come about just because of the new opportunities a rapid advancement in technology has created. Therefore, commercial property renovation trends are at an all-time high and in the near future (at least the next 4-5 years) there is no sign of the growth slowing down.