Nonresidential Construction Booms in Montgomery County

Nonresidential construction in Montgomery County increased by over 380,000 square feet in 2015 – a 51 percent increase from the previous year – according to the 2015 Nonresidential Construction report.

The report, developed by the Montgomery County Planning Commission (MCPC), indicates that continuing economic growth, both nationally and locally, has contributed to this increase as some institutions, municipalities, and businesses are now in a better financial position to expand their built assets, according to the county.

In a press release, the county said that commercial development, which includes retail, consumer services, and hotels, accounted for the highest square footage at 298,053 square feet.

While this represented the largest category for nonresidential square footage in 2015, it was below absolute totals from previous years, as growth in 2015 was more evenly spread across a number of nonresidential categories, the report showss.

The report notes that the retail industry is evolving and adding new formats each year. Many older shopping centers in the county have welcomed new services and businesses, which would have traditionally been outside of the strip mall format. The upcoming King of Prussia Mall expansion and new mixed-use developments with retail are signs that commercial development is evolving to meet needs, the release states.

The next highest nonresidential category was institutional. The majority of the 277,194 square feet constructed came from two sources – the new CHOP facility in King of Prussia and Wyncote Elementary School in Cheltenham, according to the county.

This category also experienced a rise in municipal facility construction with a number of boroughs and townships building new town halls, police stations, and ambulance facilities, the release states.

The report shows how this new commercial square footage relates to the goals of Montco 2040: A Shared Vision, Montgomery County’s comprehensive plan.

The county said that almost all of the nonresidential development in 2015 was constructed in designated Growth Areas contained within the plan’s Development Potential Map, and most of that development occurred as infill or expansions within already developed areas.