While there is some continuing concern about the impact of tariffs on construction costs, statistics show that commercial construction project activity in the U.S. is continuing to perform well in 2018. Many U.S. cities have some significant projects scheduled for delivery by the end of the year.
Are Tariffs Causing Concern?
President Donald Trump imposed several tariffs that impact construction materials costs beginning in March 2018. The truth is that construction materials prices across the board were already rising, from lumber to steel to stone. While the price impact has escalated due to these tariffs, many property owners and developers are moving forward with their projects thanks to an otherwise strong economy.
Even in the face of a potential trade war with China, there remains positive economic news at home. The U.S. has had strong job gains and increased wage growth throughout 2018. It is also showing consumer confidence at record levels and expects private consumption to remain positive in the fourth quarter.
Construction Activity for Office Space Remains Strong
In the wake of a few economic bumps, it makes sense that sentiment surrounding office space construction activity remains positive. CRE Research and Yardi Matrix report that mixed-use and new office projects will encompass approximated 101 million square feet in 2018. About 42 million square feet were delivered in the first half of the year, with about 60 percent of the total remaining to close out 2018.
Among the top U.S. markets for office space development in 2018, the Bay Area is the leader with a little over 11 million square feet of space on schedule for the year. This is followed by New York City, with major office developments in Manhattan, Brooklyn, and Queens (10 million square feet), and then Dallas Fort-Worth, with 7.7 million square feet of space scheduled to be delivered this year.
Major Office Space Projects Scheduled for Delivery in 2018
The Apple Park campus in the Bay Area’s Menlo Park is likely the largest project on slate for delivery this year. It encompasses close to 2.9 million square feet of office space, and Apple employees have already begun moving into parts of the campus.
The second largest office project completed in 2018 is the 3 World Trade Center project in New York City. The building reaches a height of 80 stories and encompasses 2.8 million square feet of space. It opened for occupancy in June.
The Comcast Technology Center is the latest building in Philadelphia’s skyline. This is a 60-story office tower that has been under construction for four years. It will have over 1.5 million square feet of space and is scheduled for completion this year.
Salesforce just completed its office tower project in San Francisco in May of 2018. This is a 1.4 million square foot structure that is now the tallest building west of the Mississippi River at 61 stories. The project took decades of planning, and it is now open for business.
K-Con, Inc. for Your Next Office Space Project
If you need to meet new or expanded office space needs, K-Con, Inc. can help you achieve your goals at the most affordable price. We are a design-build contractor that specializes in pre-engineered metal buildings that are customized to suit your needs and requirements.
K-Con works with both government entities and private commercial clients on a variety of projects across the U.S. and its territories. Contact us now to learn more about our services and be sure to ask about our quick turnaround for preliminary pricing and drawings.