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.
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.
