Technavio predicts that the commercial construction market in the US will experience a significant increase of USD 107.69 billion between 2022 and 2027, with a projected compound annual growth rate of 1.62%. Furthermore, the market’s growth trajectory is expected to pick up the pace.

As one of the world’s most dynamic and fast-paced cities, Los Angeles is always at the forefront of new design and construction trends. From sustainability and eco-friendliness to open spaces and technology, these are just a few of the top trends that are shaping the future of commercial remodeling and construction in Los Angeles, California.

commercial construction trends 2023

Technavio has announced its latest market research report titled US Commercial Construction Market 2023-2027

Los Angeles is a city that is always pushing the boundaries of what is possible in commercial remodeling and construction. The city also has an increasing number of adaptive reuse projects, where older buildings are being repurposed and revitalized for modern uses. So, if you’re planning to build sleek modern offices and sustainable eco-friendly buildings, this guide will highlight the most popular trends in commercial construction in the City of Angels.

Let’s take a look at the following remodeling and construction trends in Los Angeles.

Los Angeles Commercial Construction Market Overview

Los Angeles’s commercial construction industry is a booming market, known for its size and activity level. With a wide variety of businesses and industries present in the city, the commercial construction projects undertaken in Los Angeles are diverse. The most prevalent types of projects in the city include the construction of office buildings, retail spaces, restaurants, hotels, dental clinics, Urgent Care, and multi-unit residential properties.

Commercial Construction Statistics

The Los Angeles commercial construction market has been seeing steady growth in recent years, driven by a strong economy and a thriving business environment. The city’s population is also increasing, which has led to a growing demand for new and upgraded commercial spaces. The increased demand for commercial construction has led to a rise in construction costs, but the City is still considered to be a cost-effective location for commercial construction projects when compared to other major cities in the United States.

Overall, the Los Angeles commercial construction market is considered to be a vibrant and dynamic market, with many opportunities for businesses and investors. The city’s diverse economy, skilled workforce, and favorable business environment make it an attractive location for commercial construction projects of all types and sizes.

Commercial Remodeling and Construction Trends in Los Angeles

Los Angeles is a city known for its innovative and forward-thinking approach to commercial remodeling and construction.

Some of the top trends in this field include a focus on sustainability and eco-friendliness, the incorporation of open and collaborative spaces, the integration of technology, and the revitalization of historic buildings through adaptive reuse.

These trends are not only shaping the built environment of the city but also providing businesses with functional and modern spaces that promote productivity and creativity.

  • Sustainability and Eco-Friendliness

Adapting sustainability and eco-friendliness are major trends for commercial remodeling and construction in Los Angeles.

Many businesses and building owners in the city are choosing to incorporate sustainable building materials, energy-efficient systems, and other environmentally-friendly features into their remodeling and new construction projects. This trend is driven by the city’s growing focus on reducing the environmental impact of buildings and promoting sustainable practices.

The use of sustainable materials and green construction techniques not only helps to reduce the environmental impact of the building but can also result in lower operating costs and property values. Los Angeles city has also implemented various regulations and guidelines to promote sustainable construction.

  • Mixed-use Developments & Urban Infill Projects

Mixed-use developments typically combine residential, commercial, and retail spaces in one development, while urban infill projects involve the redevelopment of underutilized or underdeveloped areas within the city. These projects are designed to create more vibrant and livable communities by providing a mix of uses and amenities in one location.

In Los Angeles county, mixed-use developments and urban infill projects are being used to revitalize older neighborhoods and create new, walkable communities. These projects are also being used to support the city’s growing population and to create more affordable housing options.

Additionally, mixed-use developments and urban infill projects are being used to promote sustainable development by creating compact, walkable, and transit-friendly communities. The city has also implemented various regulations and guidelines to promote mixed-use developments and urban infill projects.

  • Smart Building Technology & Automation

Smart building technology refers to the use of computer-based systems and internet of things (IoT) devices to monitor and control building systems such as lighting, heating, and security. Automation refers to the use of technology to automate various building functions and processes.

In Los Angeles, smart building technology and automation are being used to enhance the functionality, efficiency, and overall user experience of commercial buildings. These are being used to improve energy efficiency, reduce operating costs, and improve building security.

In addition, smart building technology and automation are being used to create more comfortable and productive working environments for employees. The city is also keeping up with the trend by implementing regulations and guidelines to promote the use of smart building technology and automation in commercial construction projects.

  • Energy-Efficient Upgrades & LEED Certification

Energy-efficient upgrades refer to the incorporation of technology and systems that reduce a building’s energy consumption and costs. For example – the use of energy-efficient lighting and appliances, solar panels, and efficient HVAC systems.

Whereas, LEED certification is a globally recognized green building certification system that recognizes best-in-class building strategies and practices. Buildings that achieve LEED certification have met certain environmental and sustainability standards set by the US Green Building Council.

Both energy-efficient upgrades and LEED certification in Los Angeles, are being used to reduce the environmental impact of commercial buildings and to lower operating costs. The city is in line with the goal of reducing the carbon footprint and promoting sustainable development.

  • Open Floor Plans & Flexible Workspaces

Open floor plans involve the removal of walls and partitions to create large, open spaces that promote collaboration and communication. Flexible workspaces refer to spaces that can be used for a variety of purposes and can be easily reconfigured to meet the changing needs of businesses and employees.

In Los Angeles, the goal of creating such spaces is to create more productive and creative working environments, plus construct more energy-efficient and sustainable buildings by reducing the need for partitions and walls. These spaces are particularly popular among technology and creative companies that are looking to promote collaboration and innovation.

  • Outdoor Spaces & Amenities For Commercial Buildings

This trend includes the incorporation of outdoor spaces such as patios, balconies, terraces, and green roofs in commercial buildings. These spaces provide a connection to nature and can be used for a variety of purposes such as relaxation, collaboration, and recreation. Amenities such as rooftop gardens, outdoor seating areas, and even playgrounds are also becoming popular among commercial buildings.

The major reason for driving this trend in Los Angeles city is its mild climate and the desire to create more livable and sustainable environments. Outdoor spaces and amenities not only enhance the aesthetic appeal of commercial buildings but also promote employee well-being and productivity. It also reduces the urban heat island effect and creates more energy-efficient buildings by reducing the need for air conditioning.

Conclusion and Future Outlook For The Industry

The construction industry in Los Angeles is experiencing various trends, which are promoting sustainable development and improving the functionality, efficiency, and aesthetics of commercial buildings. The demand for commercial construction in Los Angeles is expected to continue growing due to the city’s strong economy, increasing population, and evolving business environment.

The city’s focus on sustainability and green building practices will continue to play a major role in shaping the industry. The rising cost of construction and labor may pose a challenge but also will lead to the adoption of new technologies and materials that can help to reduce costs and improve efficiency.

LUX Construction is a Los Angeles-based construction and remodeling company that assists clients with new sleek designs and building projects. We structure the buildings according to the latest trends and upgrades that make every workspace comfortable and pleasant. Contact us today for more information.