Southwest

Companies are leaving California in record numbers. More than 350 of them have relocated since 2020, with 2023 marking the first year in the state’s history that its population declined.

Other states in the region have benefitted from this trend, with Arizona, Nevada, and Utah all seeing bumps in their construction spending and population. Still, California is the clear standout in the region by a wide margin.

California has seen a lot of decline in new office construction as a result of rebalancing the demand post-Covid and the current financing environment. Construction here remains nevertheless robust, particularly outside of the Bay Area. There have been several mission-critical projects for the tech industry, like data centers, working their way through the planning phase in places like Santa Clara. The largest projects here tend to be data centers, medical facilities, and mixed-use projects on the periphery of the Bay Area. Los Angeles is also seeing a lot of attention as the city gears up for the 2028 Olympics as well as a return to retail spending.

Outside of California, Phoenix, Las Vegas, and Salt Lake City have all taken advantage of federal funding for infrastructure and manufacturing projects. Taiwan Semiconductor Manufacturing Company (TSMC) and LG are both building facilities in the Phoenix area. Reno, Nevada has also seen a lot of new attention as an affordable place to manufacture that’s close to the tech hubs on the other side of the Sierras.

* Other structures include religious buildings, amusement, government communications, and public recreation projects.
Source: BuildMarket

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