Office Sector Report

Office construction spending forecast for growth through 2009
August 11, 2010

The office sector is the strongest commercial market because the rollover of leases negotiated in 2001-03 kept office rental rates rising 4-5% early in 2008.

However, office-based industries have been cutting their workforces, with more cuts expected through the end of the year and only a modest recovery in 2009. The largest cutbacks will be in the securities industry and the smallest, if any, will be in government office operations.

The value of office project starts has declined slightly in 2008, according to Reed Construction Data, and will only expand enough through the end of 2009 to cover higher project costs.

The surge in office starts last year will keep office construction spending increasing at a 14% pace from mid-2008 to the end of 2009.

Top 20 office design firms
(2007 billings in $ millions)


Company Billings
Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.

1. Arup 187.00
2. Perkins+Will 85.00
3. Nelson 64.39
4. Gensler 63.70
5. Thornton Tomasetti 49.44
6. Skidmore, Owings & Merrill 46.08
7. AECOM Technology Corp. 43.52
8. SmithGroup 40.06
9. Parsons Brinckerhoff 30.14
10. Syska Hennessy Group 29.24
11. Stantec 29.06
12. NBBJ 28.67
13. HOK 28.45
14. RS&H 22.05
15. HKS 22.03
16. HDR Architecture 21.20
17. Burt Hill 20.67
18. URS Corp. 20.00
19. Jacobs Engineering Group 19.67
20. KlingStubbins 18.00

Top 20 office contractors
(2007 construction value put in place in $ millions)


Company Value put in place
Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.

1. Turner Corp., The 2,444.05
2. Structure Tone 1,633.78
3. Gilbane Building Co. 991.65
4. Clark Group 797.37
5. Opus Group, The 677.27
6. PCL Construction Enterprises 624.59
7. HITT Contracting 585.01
8. Skanska USA Building 520.00
9. Duke Construction 480.60
10. James G. Davis Construction 430.89
11. Webcor Builders 385.30
12. Balfour Beatty Construction 350.84
13. Brasfield & Gorrie 328.07
14. JE Dunn Construction Group 289.87
15. McGough Construction 289.63
16. M. A. Mortenson 256.24
17. Hoffman Construction 225.72
18. Pepper Construction Group 216.54
19. DPR Construction 205.07
20. Swinerton 200.20