Aiming to appeal to millennials and other city dwellers, many retailers continue to invest in small, stand-alone stores in city-center locations, focusing on unique interior construction that creates a distinctive shopping experience. Retail is also in the midst of an increase in big-box and grocery locations, yielding large square-foot buildings in suburban and secondary markets.
Manufacturing and e-commerce groups are also cashing in on increased economic activity, building new locations to more quickly serve consumers and to integrate their online presence with distribution facilities. These new industrial spaces include office space, more technological advances on the interiors and features like higher ceilings to hold inventory.
While retail and manufacturing construction ramps up, office starts are flattening slightly. Primary markets are tightening and costs continue to rise, due to growing labor rates and a recent jump in glass prices. The economy is also plateauing, as manufacturers and investors deal with China’s faltering economy, and this is likely to affect office starts in 2016.
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