Commercial Bulletin Highlights

CoreLogic® monitors a wide variety of construction materials for the commercial and agricultural building industry. A few of this quarter's highlights are:

  • From Q1 2016 to Q2 2016, the average for U.S. building materials decreased by 1.1%. For labor, the average wage rate increased by 0.3%, based on construction trade contracts that were renewed during the quarter. 
  • The average change for Canadian building materials decreased by 0.5% over the quarter. For labor, the average wage rate increased by 2.0%, based on construction trade contracts that were renewed during the quarter.

About CoreLogic Data Research

To ensure that our clients receive the most current building material and labor costs, the CoreLogic data team continuously researches hard costs such as labor, material and equipment , including mark-ups. Our research also covers soft cost such as taxes and fringes for reconstruction work performed for the insurance industry in the United States and Canada. We monitor demographics and econometric statistics, government indicators, and localization requirements, including market trends from nearly 3,000 unique economies in the United States, and over 100 in Canada.

  • Other factors in this process include the following:
  • Wage rates for more than 85 union and non-union trades
  • Over 100,000 line items of construction data
  • Productivity rates and crew sizes
  • Local cost concerns, such as building code requirements and other localized variables

In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information. For more information, or for further explanation, please contact your sales consultant or account manager.

NOTE: The cost information in this bulletin is only intended to give you a general sense of reconstruction cost trends in North America.  You should NOT advocate using these factors when adjusting renewal values for specific locations or across your book of business.  Please note that the building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials.

United States

U.S. Regional Weighted Commercial Cost Changes

The map and table at right provide a snapshot of the changes in reconstruction costs for commercial and agricultural buildings in the first quarter, broken into six U.S. geographic regions.

From Q1 2016 to Q2 2016, the average for U.S. building materials declined by 1.1%. For labor, the average wage rate increased 0.3%, based on construction trade contracts that were renewed during the quarter.

U.S. Regional Quarterly Cost Changes: 

Q1 2016 compared to Q2 2016

CoreLogic monitors a wide variety of construction materials for the commercial and agricultural building industry. A snapshot of some of the most common material elements is listed below:

Canada

Canada Regional Weighted Commercial Cost Changes

The map and table at right provide a snapshot of the changes in reconstruction costs for commercial and agricultural buildings in the first quarter, broken into three Canadian geographic regions.

The average change for Canadian building materials decreased by 0.5% over the quarter. For labor, the average wage rate increased by 2.0%, based on construction trade contracts that were renewed during the quarter.

Canada Regional Quarterly Cost Changes: 

Q1 2016 compared to Q2 2016

CoreLogic monitors a wide variety of construction materials for the commercial and agricultural building industry.  A snapshot of some of the most common material elements is listed below:

What's New

Quonset Hut Occupancy

The recent Q1 2016 cost model data delivery included a Quonset Hut Occupancy which was made available on the Commercial Express® platform as part of the Agricultural General occupancy grouping.  Clients of BVS Express™ and BVS desktop will also see Quonset Hut listed as an available agricultural occupancy under the General occupancy group.   The creation of the Quonset Hut occupancy required a new exterior wall finish named Quonset Arch.  This new exterior wall finish is only available in the Commercial Express platform (not available on either BVS Express nor BVS Desktop platforms).  If the Quonset Hut Occupancy is selected and added to a valuation in BVS Express or BVS Desktop the Quonset Arch exterior wall finish will not be included in the estimate of the Quonset Hut occupancy.  Because of the unavailability of the Quonset Arch exterior wall finish in BVS Express and BVS Desktop, the Quonset Hut occupancy is not accurately valued due to this missing component.

In summary, due to the Quonset Arch finish only supported on the Commercial Express platform, Commercial Express is the only platform that will calculate an estimate as intended for the Quonset Hut occupancy (with the Quonset Arch Exterior wall finish).