Homebuilding, warehouse construction, and data center construction helped lead the way to an all-time high in construction spending in 2017, as discussed in the following article published by Kim Slowey at ConstructionDIVE.
We are seeing similar trends in our region and hearing similar conversations from economists and industry leaders. The rise in single-family construction is expected to continue especially as the millennial generation looks to move from apartments in the city to single family homes as they begin to start families and have children. The data already seems to be pointing in this direction as apartment construction has slowed.
Warehouse construction is another area that we see booming in our region driven by e-commerce. As e-commerce grows, so does the need for space and cost of rent. Warehouses continue to rise throughout Pennsylvania, along with demand and increases in rent prices. Similar patterns also exist in Maryland. Amazon announced plans in November to open its fourth distribution facility in the Baltimore region that will bring another 1,500 jobs.
The outlook in 2018 for construction continues to be positive and the data seems to support further expansion.
For more information, please contact Dan Sturm, Partner and leader of the firm’s Construction Practice at email@example.com.