As we begin to reflect on 2016, the construction industry as a whole experienced a booming year of business. The year brought high demand for new projects and continued growth in an economy that is still rebounding. There was growth in many sectors, most notably retail construction. This area has expanded as retailers seek innovative exterior and interior building designs to attract new customers and retain current ones.
At the beginning of 2016, a report issued by JLL, a financial and professional services firm specializing in commercial real estate services and investment management, indicated retail construction projects were up almost 25% year-over-year. Much of the first quarter growth came from renovation rather than “new deliveries.” In meeting consumer expectations, retailers are developing renovation programs that unify an online brand experience with a brick and mortar store. As retail vacancies continue to decline, development opportunities rise.
One of MiG’s noteworthy retail construction projects in 2016 was the construction of the House of Pure Vin, located on Woodward Avenue in Detroit. An impressive 3,100-square-foot wine shop, the venue showcases towering racks of wine selections. Customers can also experience wine tastings, meal pairings and bottles to go. This new and modern project was completed in March 2016 and contributed largely to bringing life and business to the city of Detroit.
The JLL report goes on to note that the construction industry was expected to remain strong this year due to lagging the broader economy by one to two years. In light of this, projections indicate a plateau wouldn’t occur until at least 2017, which is a very promising sign for our business.