Commercial and Institutional Building Construction Revenue Benchmarks
The average commercial and institutional building construction business in the United States generates $4.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 37,631 commercial and institutional building construction businesses in the U.S., employing 602,241 workers with an average profit margin of 7.0%. The average employee in this industry earns $97K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Commercial and Institutional Building Construction Business Actually Do?
General contractors for commercial construction — offices, retail, warehouses, schools, hospitals, government buildings. Sit above subs (electrical, plumbing, mechanical) and manage the overall project.
Who buys: Developers, corporations building HQs, retailers building new stores, government agencies.
Average Revenue
$4.6M
per year
Profit Margin
7.0%
industry average
Revenue / Employee
$289K
per year
Total Businesses
37,631
in the US
Est. Owner Income
$324K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
$97K
per year (BLS)
Market Saturation
11.4
firms per 100K people
How Much Do Commercial and Institutional Building Construction Charge?
Commercial contractors price per square foot with wide variance by building type.
| Service | Typical range |
|---|---|
Office building | $200–500/sqft |
Retail (strip center) | $150–300/sqft |
Warehouse / industrial | $100–250/sqft |
Restaurant (fit-out) | $200–800/sqft |
Medical/clinical | $300–700/sqft |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete commercial and institutional building construction business plan
A 12-section data-backed business plan for a commercial and institutional building construction business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the commercial and institutional building construction industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Materials & subcontractors | $38 | $1.7M | Lumber, concrete, fixtures, subcontracted trades — the physical scope of the job. |
Wages & benefits | $30 | $1.4M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $233K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $146K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $786K | Equipment rentals, insurance (very high in construction), permits, vehicles, fuel. |
Net profit | $7 | $324K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
8.81%
openings/year
Closure Rate
8.7%
closings/year
Net Job Growth
+3.8%
annual
Businesses Closed
2,824
in 2023
Firm Count Trend
Should You Start a Commercial and Institutional Building Construction Business?
Startup Cost
$25K – $150K
Break-Even
3 months
5-Year Survival Rate
52.0%
Related Industries
Frequently Asked Questions
- What does a commercial and institutional building construction business do?
- General contractors for commercial construction — offices, retail, warehouses, schools, hospitals, government buildings. Sit above subs (electrical, plumbing, mechanical) and manage the overall project. Developers, corporations building HQs, retailers building new stores, government agencies.
- How much do commercial and institutional building construction charge?
- Commercial contractors price per square foot with wide variance by building type. See the pricing table above for typical rates by service type.
- How much does the average commercial and institutional building construction make per year?
- The average commercial and institutional building construction business generates $4.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $324K per year at a 7.0% profit margin.
- How many commercial and institutional building construction businesses are there in the US?
- There are 37,631 commercial and institutional building construction businesses operating in the United States, employing a total of 602,241 workers.
- How much does it cost to start a commercial and institutional building construction business?
- Startup costs for a commercial and institutional building construction business typically range from $25K to $150K, with a 5-year survival rate of 52.0%.
- What is the average salary in the commercial and institutional building construction industry?
- The average employee in the commercial and institutional building construction industry earns $97K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The commercial and institutional building construction industry is actively growing — adding jobs at a net rate of 3.8% per year. New establishments are opening faster than existing ones close (8.8% entry vs 8.7% exit), indicating healthy demand.
Approximately 63% of commercial and institutional building construction businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 2,824 firms in this industry closed permanently.
Employment & Wages
The average employee in the commercial and institutional building construction industry earns $96,510/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 56,412 establishments employing 721,408 people, the typical business has about 13 employees.
Industry Trend (2000–2023)
The commercial and institutional building construction industry has declined 10% since 2000 (from 40,555 to 36,302 firms).
See full historical statistics →Compare Commercial and Institutional Building Construction revenue with other industries: