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By Rami Tawasha
 Rami G. Tawasha draws on his expertise in civil
engineering and construction in his position as a senior
project manager for Constructive Solutions, Inc., a
California contractor. In this role, Rami Tawasha oversees
the construction of commercial, industrial, medical, and
retail buildings.
A recent report from Jones Lang LaSalle (JLL), an
international real estate firm, found that demand and
building revenue for new commercial construction could
rise quickly in 2015, based on factors like a high
Construction Backlog Index. In 2014, construction starts
increased due to demand for office and industrial space in
energy-producing markets, as well as higher demand in
traditional office markets in New York and other large
cities.
 The report also noted that while the demand for
large retail space has decreased because of
online shopping, the industrial sector
experienced growth in response to increased
demand for warehouse and shipping space.
Although demand has largely increased, the JLL
report stated that construction costs have also
risen, which could impact profitability for recent
and upcoming commercial buildings. JLL also
forecast that future drops in material costs could
help offset high labor costs.

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U.S. Construction in 2015: Increased Demand and Cost Considerations

  • 2.  Rami G. Tawasha draws on his expertise in civil engineering and construction in his position as a senior project manager for Constructive Solutions, Inc., a California contractor. In this role, Rami Tawasha oversees the construction of commercial, industrial, medical, and retail buildings. A recent report from Jones Lang LaSalle (JLL), an international real estate firm, found that demand and building revenue for new commercial construction could rise quickly in 2015, based on factors like a high Construction Backlog Index. In 2014, construction starts increased due to demand for office and industrial space in energy-producing markets, as well as higher demand in traditional office markets in New York and other large cities.
  • 3.  The report also noted that while the demand for large retail space has decreased because of online shopping, the industrial sector experienced growth in response to increased demand for warehouse and shipping space. Although demand has largely increased, the JLL report stated that construction costs have also risen, which could impact profitability for recent and upcoming commercial buildings. JLL also forecast that future drops in material costs could help offset high labor costs.