Building 2024: Eshelman Construction’s Outlook for the New Year
As we step into 2024, the horizon for commercial construction in Nashville appears optimistic, with a confluence of factors set to propel growth and create new opportunities. At Eshelman Construction, we are gearing up for an exciting year ahead, marked by the promise of rate cuts and groundbreaking mega projects, though not without the persistent challenge of securing skilled labor.
Fed's Indication of Rate Cuts: A Catalyst for Growth
The Federal Reserve's indication of potential rate cuts in 2024 has sent ripples of excitement through the real estate and construction sectors. This financial stimulus is expected to unleash a wave of robust lending, acting as a catalyst for further development and investment in the Nashville market. In 2024, the value of the commercial real estate market in the United States is projected to reach $25.37 trillion USD, with an estimated annual growth rate of 2.66% between 2024 and 2028. The result will be an estimated market volume of $28.18 trillion USD by year 2028 (Statista). At Eshelman Construction, we are poised to leverage this favorable economic climate to fuel our projects and contribute to the city's ever-expanding skyline.
Mega Projects: Shaping Nashville's Future
Nashville is no stranger to ambitious projects, and 2024 is set to witness the commencement of mega projects that will redefine the city's landscape. The River North development, East Bank revitalization, and the construction of the new Titans stadium are all monumental endeavors that promise to create a flurry of construction activity for years to come. At Eshelman Construction, we are thrilled to be shaping the city’s skyline contemporaneously with these iconic changes for Music City.
Capitalizing on Opportunities: Sustainability, Hotels, Data Centers, and More.
In 2024, experts predict a slew of new-normal expectations in commercial real estate, including sustainability and hybrid work expectations. Sustainability is becoming increasingly important, not just for its impact on the environment but for property value and longevity (Deloitte Center for Financial Services). Additionally, “the normalization of hybrid working arrangements will continue to limit the growth of office demand” which will inspire builders to get more creative with their work spaces if they hope to incentivize commutes to in-person work (CBRE). While the opportunity for office spaces might be waning, the industrial market, apartment building industry, domestic hotel market, and demand for data centers are all anticipated to thrive in 2024 (CBRE).
The Persistent Demand for Skilled Labor: Navigating Challenges
While the future looks promising, we cannot ignore the ongoing challenge of securing skilled labor in the construction industry. Despite the growing demand for construction professionals, the shortage of skilled trades remains a concern. This scarcity could potentially lead to delays or localized budget increases in certain areas, though this is not a given. While we always encourage adaptability for times like these, at Eshelman we pride ourselves on efficient work that honors your budget. And, as a full-service construction company, we take care of finding, enlisting, and managing all partners necessary for the successful completion of your project, including skilled workers. Our commitment to impeccable service extends beyond construction methodologies; it encompasses creating a seamless construction experience for our clients that includes securing all necessary labor.
As we navigate the dynamic landscape of 2024, we are looking forward to the opportunities that lie ahead. The prospect of rate cuts coupled with groundbreaking mega projects positions Nashville as a thriving hub for commercial construction. While challenges such as the shortage of skilled labor persist, our company is dedicated to overcoming these obstacles and handling them on your behalf. With a commitment to excellence and a passion for service, Eshelman Construction looks forward to helping you contribute to Nashville's growth and leave a lasting legacy in the heart of Music City. If you’re looking to add to Nashville’s skyline in 2024, it’s never too early to get started. Contact us today so we can begin to bring your vision to life.