Constructing a retail building, office, or warehouse is no small feat. From hiring commercial building contractors to sourcing materials, it involves a significant investment of time and money, especially recently. While erecting a commercial building was never a modest undertaking, the prices have significantly increased over the past few years. To learn more about the reasons behind this phenomenon and some factors you should consider before hiring a commercial contractor, check out the information below.

Reasons for the Rise in Commercial Building Costs

Labor Shortage

The 2008 recession in the U.S. caused 600,000 workers to leave construction jobs and never return. Fast forward to the present day; millennials and members of Generation Z entering the workforce largely prefer to go to a four-year college and take on jobs in other industries. In the U.S. alone, there are 434,000 vacant construction jobs as of April 2019, according to the U.S. Labor Bureau. Skilled craftspeople and commercial building contractors are essential for large-scale construction projects, making this shortage particularly damaging to the industry.

Increased Material Costs

The average commercial construction cost for a building can reach into hundreds of dollars per square foot. While this varies depending on the materials you choose and the contractor you hire, the cost of many products used in commercial construction climbed 7.4% as of October 2018. Diesel fuel, steel pipe and tube, asphalt paving mixtures, and aluminum were some of the many products subject to the increases, all of which are heavily used in large-scale commercial construction projects.

Real Estate Market

Commercial real estate prices have risen by 7% across the board, according to Real Capital Analytics' Commercial Price Property Index report. This increase contributes to the challenge presented to commercial building contractors. Since business structures are typically larger than the average residential project, commercial construction projects are more costly.

If you seek trustworthy commercial building contractors, turn to the team at BHI General Contracting in Fairfield, OH. This independently owned business proudly serves customers throughout the Tri-State area, always finishing on time and within budget. Their experienced contractors have designed retail stores, restaurants, office buildings, and more. They have the knowledge and experience to help you create the perfect space for your business. Call (513) 330-5686 today, or visit their website to take a look at their current projects.