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:

National Average

From Q1 2017 to Q2 2017

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.

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.

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.

U.S. Regional Weighted Commercial Cost Changes

The table at right and maps below provide state by state changes in reconstruction costs for commercial and agricultural buildings.

From Q1 2017 to Q2 2017, the average for U.S. building materials increased by 2.5%. For labor, the average wage rate increased by 0.3%, based on construction trade contracts that were renewed during the quarter. 

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:

U.S. State by State Cost Changes

Q1 2017 compared to Q2 2017

STATE Commercial Agricultural
Alabama 0.99% 1.04%
Alaska 0.40% 0.40%
Arizona 0.79% 1.02%
Arkansas 1.18% 0.63%
California 0.94% 0.83%
Colorado 1.07% 0.83%
Connecticut 0.38% 0.75%
Delaware 1.08% 1.10%
District of Columbia 0.78% 0.90%
Florida 0.78% 0.52%
Georgia 0.70% 0.77%
STATE Commercial Agricultural
Hawaii 1.44% 1.44%
Idaho 0.68% 0.10%
Illinois 0.69% 0.63%
Indiana 1.24% 1.13%
Iowa 1.12% 1.30%
Kansas 1.04% 0.74%
Kentucky 0.98% 1.24%
Louisiana 0.99% 0.86%
Maine 0.78% 0.73%
Maryland 0.87% 0.87%
STATE Commercial Agricultural
Massachusetts 0.77% 0.94%
Michigan 0.89% 0.67%
Minnesota 0.67% 1.03%
Mississippi 0.96% 1.12%
Missouri 0.62% 0.45%
Montana 0.72% 0.65%
Nebraska 0.45% 0.61%
Nevada 0.60% 0.83%
New Hampshire 0.64% 0.50%
New Jersey 0.87% 0.70%
STATE Commercial Agricultural
New Mexico 1.14% 1.00%
New York 0.74% 0.74%
North Carolina 1.01% 0.90%
North Dakota 0.93% 0.94%
Ohio 1.03% 1.05%
Oklahoma 0.39% 0.37%
Oregon 0.86% 0.86%
Pennsylvania 0.55% 0.75%
Rhode Island 0.56% 0.40%
South Carolina 0.78% 0.72%
STATE Commercial Agricultural
South Dakota 1.57% 1.74%
Tennessee 1.25% 1.12%
Texas 0.71% 0.67%
Utah 0.69% 1.40%
Vermont 0.52% 0.60%
Virginia 1.00% 0.96%
Washington 0.81% 0.81%
West Virginia 0.70% 0.70%
Wisconsin 0.75% 0.75%
Wyoming 0.57% 0.57%

Canada Regional Weighted Commercial Cost Changes

The table at right and maps below provide a province by province snapshot of the changes in reconstruction costs for commercial and agricultural buildings.

The average change for Canadian building materials decreased by 1,0% over the quarter. For labor, the average wage rate increased by 1,0%, based on construction trade contracts that were renewed during the quarter.

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 Province by Province Cost Changes

Q1 2017 compared to Q2 2017

Commercial - Q1 2017 compared to Q2 2017

Agricultural - Q1 2017 compared to Q2 2017

For Q3 2017 a new item has been added to the additions, Pre-Fab Self Storage.

Pre-Fab Self Storage – 4005

Pre-Fab Self Storage is based on single source builders that provide services from design to construction.  This item differs from Occupancy 7300, Self-Storage, by not relying on conventional framing techniques whereas Pre-Fab Self Storage is erected as a “kit” from the builder.  Pre-Fab Self Storage is offered as units of varying sizes and story heights constructed of either Metal or Concrete Block exterior walls.  Each unit includes the following; Concrete Slab, Low-Pitch Roof, Gutters, Roll-Up Door, Partition Wall, Exterior Wall and Minimal Electricity.

Exterior Wall

Metal and Concrete Block

Unit Sizes and Height to Eaves

Cost Adjustments

Chain Link Fence – The cost is based on square feet to allow for varying fence heights and lengths.  Cost includes the following; Support posts, 6 Gauge Wire Fabric, Post footing and installation hardware.

Motorized Gate –  Sliding gate that allows access via a keypad.  Cost is based on square feet to allow for varying gate heights and widths.  Costs include; Support posts, concrete post footings, rollers, tracks, wheels, mounting hardware, gate opener and keypad.

Flood Lights – Cost is for 1 pole mounted fixture with a 1,000-watt enclosed quartz iodine or filament lamp.  Cost includes; fixture, lamp, steel pole, transformer sub-base, concrete foundation, wiring and controls.

Concrete Bollard – 6” diameter steel bollard filled with concrete.  Cost is for one bollard that is 4 feet tall and includes all installation hardware.