News

The Northeast commercial construction market slowed in 2024, as compared to the past 5 years. The lack of large tenant activity across various market sectors is keeping most shovel ready developments from starting. The election cycle is behind us and although the Fed has cut interest rates recently (4.33%), it appears more significant cuts are not expected in the near future. These interest rates, coupled with high construction costs and record vacancy rates make for less than favorable conditions for new buildings coming out of the ground in the short term. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

The Northeast construction market has slowed in 2024, as compared to the past 5 years. With some exceptions, new developer starts are on hold as large tenant activity / movement is lacking. Other macro factors are impacting commercial construction starts as well – such as high vacancy rates, an upcoming Presidential election, and rising construction costs to name a few. Conversely, the Medical and University / Academic sectors continue to invest in their facilities and VC capital appears to be coming off the sidelines for smaller life science investments. We’re cautiously optimistic that the commercial construction market is gaining some traction again. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Long lead times for large switchgear packages and generators continue to challenge the construction industry in the Greater Boston area and beyond. Extended lead times for critical electrical equipment have been ongoing since the pandemic.

The Northeast construction market has slowed in the past year. With some exceptions, new developer starts are virtually on hold as large tenant activity / movement is lacking. Other macro factors are impacting commercial construction starts as well – increased vacancy rates, interest rates, and rising construction costs to name a few. On a positive note, we’re seeing the Medical and University / Academic sectors continue to invest in their facilities and infrastructure. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

The construction market in the Northeast has softened in the past 6 months. Although many contractors have healthy backlogs, new commercial construction starts have slowed and backlogs are turning into earned revenue without many large new builds taking their place. Macroeconomic factors such as interest rates, inflation, record vacancy rates (23.7% nationally!) in urban areas (i.e. Boston/Cambridge), and lack of tenant movement have led to many market sectors being stagnant for construction.. This update is a snapshot of today and we implore you to reach out with questions should you have any. 

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Large contractors in the Northeast and throughout the US have relatively healthy backlogs extending throughout 2024 and into 2025. Macroeconomic factors like interest rates, inflation, record vacancy rates in urban areas (i.e., Boston / Cambridge), and lack of large tenant movement have led to many market sectors being stagnant for construction. Without signed lease agreements, developers are still not moving forward with large scale buildings that are shovel ready. Academic and healthcare market sectors continue to be strong in the Northeast and data center activity is very strong throughout many areas of the country. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Contractors in the Northeast and throughout the US still have solid backlogs extending throughout 2023 and 2024. Interest rates hikes, pricing volatility, employees not working in their physical offices, and other macro stressors have dampened many market sectors. Developers are cancelling or pausing some permitted projects for large buildings / facilities on spec and the tenant interior market is slow. Academic, healthcare, and the large-scale residential markets continue to be strong. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

The vulnerabilities of the global supply chain have caused major disturbances in pricing and lead time for the construction industry. Everyone we speak with on this topic has an example of a recent project where materials didn’t ship on time, releases weren’t timely, pricing increased, or the quoted lead time was so long that schedules had to be extended. These historically long lead times have mostly stabilized, while pricing for electrical components continue to increase. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Recently, Gaston Electrical returned to the Mattahunt Elementary in Boston for a STEM day with AGC of MA and Industry Partners. The day included a reading session with Author Courtney Kelly’s book “Celeste Saves the City” and a LEGO build exercise. Students learned about the importance of teamwork, collaboration, and communication. A great time was had by all, and we look forward to the next visit!
 
Link to full Boston Real Estate Times article here: bit.ly/GastonMattahunt

Post COVID, the global supply chain vulnerabilities were exposed and this has caused major disturbances in pricing and lead times for the construction industry. Since our last edition of The Pulse in November 2022, historically long lead times have (mostly) stabilized, while pricing for electrical materials are still increasing. Our goal with The Pulse is to share current market conditions with our customers and partners. This update is a snapshot of today and we implore you to reach out with questions should you have any. 

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.

Introducing “The Pulse” industry trends and forecast report. During the second half of 2020, the pandemic exposed the vulnerabilities of the global supply chain. Labor shortages and decreased availability of materials needed in all phases of construction (coupled with strong demand) has impacted pricing and supply. Thus, the commercial construction industry is facing extraordinary supply chain and pricing unpredictability. Our goal with The Pulse is to share current market conditions with our customers and partners. This update is a snapshot of today and we implore you to reach out with questions should you have any.

Michael Weber / President  (781) 255-8881 mweber@gastonelectrical.com

To view The Pulse in larger format or to download, please click here.