As the real estate industry experiences shifts driven by economic factors, developers and investors continue to explore more efficient and sustainable building solutions. In an effort to stabilize mortgage rates, the latest move by the Federal Reserve made last week cut the fed funds rate by 50 basis points, marking it as the first reduction in over four years. According to Forbes Advisor, “While lower rates are improving affordability for some, home prices continue to break records, leaving many buyers waiting for further rate drops. At the same time, housing inventory is gradually loosening, slowing the pace of price growth.”
In this evolving landscape, metal buildings are a smart, cost-effective solution. Today’s #MagnficientMetalMonday explores the top advantages of metal buildings in today’s real estate market:
Metal Buildings are Cost-Effective to Build and Own
From construction to maintenance, metal buildings often offer significant cost savings. The prefabrication of steel components allows for faster construction times, reducing labor costs. Additionally, metal buildings can be erected with fewer materials and require less on-site work, further cutting down on expenses.
In real estate, time is money. The quicker a building can be constructed and made available for occupancy, the faster it can generate rental income or be flipped for resale. Metal buildings enable real estate developers to complete projects more efficiently, maximizing their return on investment.
Environmentally Responsible
Just as sustainability is of top concern for the construction business, it is no different in real estate. Steel is the most recycled material in the world, and it is the only material that can be reused repeatedly without losing its strength, making metal buildings ideal for eco-friendly projects. They can be designed to optimize energy efficiency, easily accommodated solar panels or be insulated with advanced materials to reduce energy consumption.
Buildings constructed with steel often include reflective roofing materials, which help to reduce heat absorption. This means lower cooling costs during the summer months, which is appealing to both residential and commercial tenants. Additionally, the eco-conscious construction methods used in metal buildings can make them eligible for green certifications, such as LEED, further enhancing their marketability.
The energy efficiency and longevity of metal buildings mean a smaller carbon footprint over their entire lifecycle compared to traditional construction materials. This sustainability aligns with the growing demand for green building practices in real estate, making metal structures a forward-thinking choice for developers.
Fast and Efficient Construction and Assembly
Real estate developers often face tight deadlines, whether they’re constructing new buildings or renovating existing properties. Metal buildings offer the advantage of quick assembly. Prefabricated metal components can be manufactured off-site and assembled on-site in a fraction of the time it takes to construct traditional buildings. Studies have shown that builders can save up to 33 percent of the time required for traditional construction.
Additionally, metal buildings are easily expandable. If a property owner needs to add more space in the future, metal structures allow for seamless expansion without major disruptions to the original building. This flexibility is a major selling point in real estate, especially for commercial or industrial clients who may need to scale their operations over time.
According to CDMG, “When it comes to commercial real estate investing, investors overwhelmingly choose pre-engineered metal buildings. This is because pre-fabricated metal building kits require a far smaller initial investment than other types of construction.”
High Resale Values
Buying, selling, and renting are all part of the real estate business and investors expect their properties to have a high resale value. Because metal buildings are virtually maintenance-free, they reduce the need for costly upkeep. Due to their durability, energy efficiency, fire resistance, and low maintenance, metal buildings often retain their value over time. The long lifespan of these structures means that they remain in good condition even after years of use. For real estate investors, this is a crucial advantage, as it allows for higher resale values when the time comes to sell the property.
Additionally, because of the growing trend toward eco-friendly and sustainable construction, metal buildings are increasingly seen as valuable assets in the real estate market. They appeal to buyers looking for properties that are both cost-effective and environmentally conscious, further boosting their resale potential.
Discover the Evolving Trends in Metal Construction at METALCON
As real estate developers look for innovative ways to stay competitive in a changing market, attending METALCON 2024 next month is a must. This event offers an unparalleled opportunity to explore the latest trends in metal construction, with cutting-edge solutions that can help developers build more efficiently and sustainably. One keynote address, in particular, will be of great interest to anyone in real estate: “The Good, The Bad, & The Ugly: Financial Outlook and Trends for Metal Construction Industry,” presented by Dr. Anirban Basu, CEO of Sage Policy Group, Inc. Dr. Basu will provide valuable insights into the economic forces shaping the industry, helping attendees make informed decisions about future projects.
In addition to this keynote address, METALCON offers over 35 education sessions in sustainability, prefabricated construction, and other best practices. METALCON takes place October 30 – November 1 at the Georgia World Congress Center in Atlanta, Georgia. Your Total Experience registration includes 3 days of access to a robust exhibit hall where you can learn about the emerging trends first-hand from leading manufacturing companies. Don’t miss the chance to stay ahead of the curve at METALCON.