Despite worries over a recession, 2023 shows promise for the commercial construction market. The American Institute of Architects has recently forecasted the growth rates of the top market segments. Here’s a closer look at where the AIA would put its money for the best returns this year.
- Hotels and resorts
- Industrial construction
- Hospital and health construction
- Public safety
Hotels And Resorts Lead Commercial Construction
The hospitality industry, hard hit by the pandemic, will experience considerable growth in 2023. Growing consumer confidence will lead to additional travel, despite financial uncertainties, driving 14% growth, according to the AIA. Businesses also want to connect directly with customers via tradeshows and conferences. That’s great news for investors wishing to put their money into new or expanded hotel and resort ventures.
Industrial Construction Projections Poised For 10% Growth
The need for warehouses to store and ship products will help heal supply chain woes. The government’s infusion of infrastructure spending will provide much of the funding for these projects, allowing manufacturers to meet the demand for in-home deliveries.
Amusement And Recreation Construction Will Grow By 6%
A revenue increase at amusement and recreation venues may lead to a 6% increase in this commercial sector. Despite concerns over inflation, this is an excellent commercial real estate investment option in 2023.
Hospital And Health Construction Will Rise By 6%
Numerous factors will fuel hospital projects, including an aging population in need of more frequent care. Further, community-based healthcare facilities will create additional access for patients. The healthcare sector will require consistent growth to meet market demands in 2023 and beyond. Fortunately, private money lenders offer expanded financing opportunities for healthcare administrators to tap.
Strong Public Safety Construction Will Increase By 5%
Whereas 2022 brought a 10% downturn in public safety projects, 2023 shows signs of a 6% growth. To address rising crime rates, public officials must construct new detention and other facilities to avoid overcrowding. This segment can benefit from flexible hard money lending from a parking garage loan to building a new jail.
Education Construction May Grow By Over 5%
As students return to in-person learning, education construction will continue to increase. Over the pandemic, parents became more confident in public school curricula. However, higher tuition rates at colleges and universities make it tough to get traditional loans for new building projects. Fortunately, private lenders can fill in the gap.
Office Construction Will Increase By 3%
Although office construction projects will pick up in 2023, they will reflect the growth of hybrid workplaces. That means an increased need for smaller square footage and shared workspaces for employees who work primarily from home. There are many ways to fund these project models, including no-hassle hard money loans from a trusted lender.
Trusted Hard Money Lenders In Las Vegas
NV Capital Corporation can help investors raise capital to follow these commercial construction trends. We provide fast, no-hassle loans so you can kickstart your projects and meet the demands of your clients and customers in every commercial venture. Contact us today to schedule a consultation!