Booming Infrastructure Projects and Urbanization to Push U.S. Commercial Construction Market at 5.4% CAGR Through 2032

According to the latest market research study published by P&S Intelligence, the U.S. commercial building construction market reached a valuation of USD 560.5 billion in 2024 and is projected to grow at a 5.4% CAGR from 2025 to 2032, attaining USD 843.9 billion by 2032. This expansion is driven by the rising demand for office spaces, retail complexes, healthcare facilities, logistics centers, and hospitality infrastructure.

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A post-pandemic rebound in 2024 fueled a surge in new office, warehouse, and retail projects, with the return-to-office trend sparking the development of modern, flexible, and sustainability-focused workplaces. Rapid urbanization and population growth—particularly in states like Texas, Florida, and Arizona—are stimulating commercial real estate activity, while the revival of domestic and international travel is propelling hospitality and entertainment construction.

Government infrastructure initiatives, such as the Infrastructure Investment and Jobs Act, along with significant investments in eco-friendly, energy-efficient buildings, are further reinforcing the market’s growth momentum. Strategic developments in transportation hubs, high-speed rail networks, and airport upgrades are not only enhancing connectivity but also boosting demand for commercial construction across multiple sectors.

Key Insights

• In 2024, office buildings represented the largest share of the market at 65%, as businesses sought high-quality spaces with modern amenities, particularly in fast-growing corporate hubs like Austin, San Jose, Seattle, and Boston.
• The healthcare facilities segment will grow at the highest CAGR during the forecast period, fueled by demand for mental health centers, outpatient clinics, and modern hospitals equipped with advanced technology such as robotic surgery suites.
• Warehouses and logistics centers are in high demand due to e-commerce expansion. Companies like Amazon and Walmart are building facilities closer to cities to enable faster delivery, supported by automation technologies such as robotics and AI.
• In 2022, U.S. nonfarm employer businesses invested USD 1,899.9 billion in new and used structures and equipment—12.9% higher than in 2021—significantly boosting warehouse construction.
• Government spending is a major driver, with USD 550 billion allocated for road and airport modernization. November 2023 saw USD 9.2 billion worth of highway projects, a 16% year-over-year increase.
• Notable infrastructure projects include California High-Speed Rail (USD 77 billion), Sound Transit 3 (USD 54 billion), and Hudson Yards (USD 20 billion), among others.
• New construction accounted for 60% of the market in 2024, as companies preferred brand-new, energy-efficient spaces over outdated facilities.
• The renovation & remodeling segment will witness the fastest growth, driven by hybrid workplace models and space optimization in urban settings where land availability is limited.
• By application, owned properties held 70% of the market in 2024, reflecting companies’ preference for long-term cost efficiency and control.
• The rental segment will expand the fastest, as businesses seek operational flexibility amid economic uncertainties, with startups and logistics firms leading the trend.
• Regionally, the Southern U.S. was the largest market in 2024 with a 40% share, benefiting from lower living costs, a skilled workforce, and strong migration trends.
• The Western region will grow at the highest CAGR due to heavy investments in smart city initiatives, sustainable building projects, and large-scale transportation infrastructure.
• The market remains fragmented, with key players including Turner Construction Company, Bechtel Corporation, Kiewit Corporation, Skanska USA, Gilbane, and DPR Construction, each focusing on specialized sectors or project types.
• In April 2025, Kiewit Corporation’s subsidiary Weeks Marine was awarded Louisiana’s largest barrier island restoration project, highlighting the expanding scope of construction activities beyond traditional commercial builds.
• In December 2024, JE Dunn Construction completed The Broadleaf, a 572,205-square-foot mixed-use development in Aurora, Colorado, showcasing continued investment in multi-functional urban spaces.