Statistics have a way of surprising even the most stoic of individuals. For example, did you know that 15 percent of Google searches have never been searched before? Or that 20 percent of songs on Spotify have zero plays?
Mind-blowing statistics like these are in every industry, including commercial real estate. Let’s tap into some trusted data sources to share some of the more jaw-dropping commercial real estate statistics.
Commercial construction values reached $89.5 billion in 2018. (Source)
The 2008 recession is a distant memory, as construction values have been slowly rising ever since. In 2022, the value of construction starts in the U.S. is projected to reach $135 billion. Among this commercial construction, private offices, warehouses and shopping/retail facilities are the most popular (according to 2019 data).
The U.S. ranks No. 6 in the world among countries using AI technologies. (Source)
Japan, Singapore, Hong Kong, China and the Netherlands outrank the United States when it comes to leading the charge with AI tech adoption. Among survey respondents, Japan reported a 56 percent adoption rate, the United States reported a 31 percent adoption rate and the average among all countries was 31 percent.
Approximately 12.5 percent of offices will be vacant in 2020. (Source)
This projected number is actually down from the 12.8 percent office vacancy rate in the United States in 2019. Commercial real estate locations like offices have vacancies for a variety of reasons, from location to type and cost. But the rate can seem extremely high at first glance.
Among CRE pros, 92 percent plan on increasing or maintaining technology investments. (Source)
This should blow your mind (and be a little frightening) if you plan on decreasing technology investments in the coming years. More and more commercial real estate professionals are investing in CRE software like Quarem to enhance their portfolios and set their businesses up for future growth.
The city with the highest hotel construction costs is Chicago, Illinois. (Source)
The average construction cost for a five-star hotel in Chicago is $520 per square foot. Compare that to the $195 per square foot in Portland, Oregon, and you’ll see why this is such a mind-blowing statistic. The hotel pipeline in the U.S. has experienced healthy growth and luxury/high-scale hotel projects are at all-time highs.
What else will blow your mind? The way Quarem helps grow your CRE business. To see the tool in action, request a demo today.