Dive Brief:
- Buildfax has released its list of the 20 most active U.S. cities for commercial remodeling, an industry which the property data company said increased 7% from 2014 and 26% since 2013.
- Louisville, KY, Buildfax reported, is at the top of the list, followed by San Jose, CA; Denver; Bakersfield, CA, and Riverside, CA.
- In contrast to renovation, new commercial construction has increased only 22% since 2013, and Buildfax said that with the expected growth in the country's service industry workforce, commercial remodeling activity should continue to increase.
Dive Insight:
Buildfax CEO and Founder Holly Tachovsky said that renovating a commercial property helps to preserve a city's history, reinvigorates old neighborhoods and is an environmentally friendly alternative to building new. However, it's not without its risks. Buildfax said unforeseen conditions in older buildings can be costly, and changes to historic buildings often require local government or preservation association approvals.
Buildfax also said commercial renovation appears to be the hottest in cities that are already experiencing an uptick in growth and that approach commercial development through the lens of sustainability.
General contractor Skanska recently signed a $38 million contract to turn an historic commercial building in San Francisco into a Yotel "microhotel." The 112-year-old, 72,000-square-foot building will undergo seismic upgrades, see an additional floor added at the ground floor level and receive other structural and cosmetic improvements.
General Electric also recently announced its new $100 million Boston headquarters would include the rehab of two historic buildings in addition to the construction of one new building. International architecture firm Gensler will design the project, which GE said will have a "global" and local feel. Another corporate headquarters project getting underway is Ford's office campus upgrade in Dearborn, MI, estimated at $1.2 billion. Ford's overhaul includes the renovation of 70 existing buildings and construction of a new research and development center.