California City Scoop: Construction Starts in Los Angeles
Total Construction Spending Expected to Remain Little Changed in 2020
Institutional activity is forecast to rise 12% thanks to a 17% rise in spending on education buildings.
City Grill
Randy Starbird
President, West Region
Clune Construction Co.
Construction in Los Angeles and surrounding regions remains very active, says Starbird, who points to an increase in larger projects of over 100,000 sq ft.
At the same time, strong growth in the entertainment industry continues to boost demand for construction, he adds.
“We are also seeing an increase in building owners who are competing to retain existing tenants and attract new tenants in a competitive environment, and are updating their properties with finish upgrades,” says Starbird, who notes the popularity of indoor-outdoor space development thanks to the region’s sunny skies.
Meanwhile, Starbird says the large amount of projects in Los Angeles has impacted available manpower and resources, and he expects this trend to continue as the city prepares for the 2028 Summer Olympics.
“Along with this growth has come a rise in construction costs, which continue to climb due to limited resources and tariffs on foreign materials,” Starbird says. “Because the construction labor shortage continues to limit subcontractor resources, many out-of-state subcontractors have succeeded in winning projects in the area.”
