Commercial Steel Buildings Being Used in the Real Estate Boom?…
Things are currently pretty good in terms of the economy in the United States. Since the 2008 financial crisis that occurred due to the housing market crash, the GDP of the U.S. has grown by almost 12%. In the past two years we have seen a growth rate of 4%. The current National Unemployment Rate rests around 4% as well. We have seen 90 straight months of job growth. And with all of this economic growth and prosperity we have seen a resurgence in commercial real estate construction and the use of commercial steel buildings.
Why is the commercial real estate industry so into prefab commercial steel buildings?…
In April of this year commercial real estate loans at U.S. banks reached an astounding $4.3 trillion. While commercial real estate prices plummeted by 40% during the financial crisis of 2008, according to the Commercial Property Price Index- at this point they have entirely rebounded and in September of 2017 they even reached a peak of 27% above the highs experienced in 2008, right before the crash. The difference this time however is that prices of commercial real estate do not appear to be overly inflated, like they were during the housing bubble, but rather they are in step with the economic growth that has been occurring in the country.
New Commercial Construction Adding to the Boom
It is estimated that there are 5.6 million commercial buildings in the United States, representing nearly 87 billion square feet of floor space. According to the Commercial Building Energy Consumption Survey this represents an increase of 14% in buildings and 21% in floor space since the year 2000. That means that since 2000, nearly 784,000 new commercial construction projects have occurred, adding nearly 18 billion square feet of commercial space in the country.
Much of how this new construction has occurred so quickly is with the introduction and adoption of metal building kits for commercial steel buildings. While these products have been around for quite some time, the past two decades have seen an increase in their usage. Because of this contractors and commercial real estate investors have been able to meet the demand of economic growth with ready to be made and easily put together pre-engineered steel buildings.
Part of what is driving this demand for new construction, and the need for metal building kits that are easily and quickly constructed, is the 5.83 million employers in the United States. Of these 5.83 million employers 99% are considered to be small business owners, or businesses with fewer than 500 employees. Consumer confidence is near all time highs and small business owners in particular are confident that in the next 12 months they will see an increase in sales and earnings. This confidence is one of the main signifiers of the need for commercial real estate growth, as many companies will be expanding their operations, or opening new branches to meet demand.
Prefabricated Steel Buildings are Commercial Real Estates “Go To” Choice!
In terms of being able to expand their pre-existing buildings, commercial real estate owners are increasingly looking at metal building kits or pre-engineered steel buildings. They are doing this because of how easily customizable these structures are and because of their durability and the price points that these structures start at.
Many commercial real estate investors, when looking at their bottom line, come to the conclusion that metal building kits for steel buildings are the best way for them to maximize their investment. Beyond this they also realize that it will offer them a building that will not require much upkeep, but yet will still keep their tenants happy. The latter two aspects of metal building kits are what every real estate investor is looking for. They want a building that will essentially take care of itself, but stills offer a structure that is durable and sturdy.
So as the commercial real estate boom continues, we will continue to see investors looking for creativity ways to ride this wave to high profits. Considering that GDP growth is estimated to continue at a growth rate of 2 to 3% over the next few years, there will definitely be more and more opportunities for smart investors and real estate developers to make money.
Purchase Your Own Commercial Real Estate with a Pre-Engineered Steel Building
Our goal at Titan Steel Structures is to give you the easiest building solutions without compromising quality, so if you are in the interested in learning more about the benefits of steel buildings or metal building kits then give us a call today at 1-855-964-4030, or request a free quote online. Titan Steel Structures’ expert and knowledgeable staff are available Monday thru Friday from 9:00am to 6:00pm. We’re here to serve and guide you through the building selection process.