If you look at the skylines of our 3 major cities in South Florida, Palm Beach, Miami, and Ft. Lauderdale, one thing is consistant…the presence of large construction cranes in South Florida. It might seem that there are steel cranes everywhere in South Florida, but construction starts actually declined by 10 percent in 2017, according to Dodge Data & Analytics.
There were $10.76 billion construction starts in the tri-county area last year, compared to $12.01 billion in 2016. The reason for the overall decline was that residential construction starts plummeted 33 percent, to $5.1 billion. That has been a big drop off in condo groundbreakings due to slow sales, although there are many apartment projects still starting.
SO WHERE ARE ALL THE CRANES COMING FROM…?
The commercial construction sector was actually larger than the residential sector for the first time in several years. There was a 27 percent jump, to $5.66 billion, in nonresidential construction starts such as industrial, retail, hotel, office, health care, education and government. There’s been a boom in warehouse, self-storage and hotel construction, plus this is one of the few markets in the country where there’s a significant amount of new retail coming out of the ground. That amounted to a 27-percent increase from 2016, according to Dodge Data & Analytics’ year-end report. The commercial sector, including multifamily and industrial, is thriving as some of the region’s biggest GC’s shift their focus to building properties like warehouses, seaport and airport facilities, and apartment buildings.
“I think we counted 20 cranes just in down town Miami last week as we were heading over the bridge for a large residential demo on the intracoastal”, said Don Miller, Owner and GC at Miller Myers. “Often times our clients who deal with multiple properties, like the luxury home in Miami we are demoing today, do not carry a GC License. So our team comes in and acts as GC on the project, and takes care of the residential demolition work as well.”
So the bottom line…Don’t always judge a crane by its cover, or don’t always judge a Market by the number of Cranes…One way or the other, Commercial Construction is booming in South Florida, which means commercial demolition is growing as well, right here at Miller Myers Demo.
Stay tuned to the Miller-n-Myers Blog for the latest industry buzz on South Florida’s demolition, real estate, and construction work. Give us a call anytime for a FREE Demo Estimate 954-865-4891 or email us at email@example.com.