When speaking about commercial construction, one can be confused – as there are actually many different types of commercial construction. A few of the most common commercial construction subcategories are:
- Commercial Construction
- Heavy Industrial
- Institutional
- Engineering
- Residential
- Multi-family
When speaking about commercial construction, we are often times talking about the construction of business-type properties. Things like medical centers, office spaces, office buildings, skyscrapers, retail shopping centers, and assembly plants. As far as the size of the business which is considered a commercial property, it can vary greatly in both size and scale.
When it comes to commercial construction, it is not just about building these commercial spaces, but also about selling and leasing them. It is most common that when a commercial builder or contractor enters a contract with a company, it is to build the facility with an expectation that it will be leased out to another company, leased out, and/or sold at a later time and date.
Most of the time, the way commercial construction comes about is from a result of a bidding process. First, an architect will draft up the specs and drawings for a new commercial space. Once the design is finalized and released out for bid, commercial construction companies enter the bidding process, submitting bids. The company with the best bid cost has the best chance of winning the bid, but of course the company will be reviewed and often times interviewed by the hiring company. Most often, also, the site of construction is already found, ready, and planned to be used.
The building of commercial structures is something that will never go away because it is driven by population growth and business. Of course, certain areas see more growth than others, depending on what cities and metropolitan areas, but it can be expected that overall population will continue to increase. This means that new properties will always need to be build, as there will always be a demand.
It used to be that commercial construction companies could handle all types of commercial projects, but recently the industry has shifted into a more niche-specific approach. Now, companies specialize in a single commercial market. For example, one company may have a focus on water treatment plants or dams, while another company many focus on skyscrapers and high-rise buildings, while a third company may specialize in the building of banking institutions or restaurants. All are specific areas within the commercial construction niche.
It is not doubt one of the more profitable sections within the industry, as commercial spaces generally have a lot of budget and capital. If you are thinking about specializing in of the construction industries, the commercial aspect is definitely one that gets a lot of action and attention.
