NAICS 236220 Quarterly Industry Report
Commercial and Institutional Building Construction
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 236220Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for Commercial and Institutional Building Construction (NAICS 236220) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[9], OSHA[8], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, commercial construction analysts, and building development investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the commercial and institutional building construction industry.
Industry Definition & Overview
Commercial and Institutional Building Construction (NAICS 236220) encompasses establishments primarily responsible for the construction of commercial and institutional buildings and related structures including new work, additions, alterations, maintenance, and repairs per the U.S. Census Bureau[5]. Covered structures include office buildings, shopping centers, schools, hospitals, hotels, stadiums, religious buildings, museums, prisons, libraries, dormitories, farm buildings, grain elevators, and indoor swimming facilities. This is the largest nonresidential building construction classification by revenue.
Industry revenue reached $432.4 billion with $43.7 billion in annual payroll across 44,671 business locations per Census Bureau[6] economic survey data. Turner Construction ranked as the number-one commercial contractor in the 2025 ENR Top 400 by revenue. McCarthy Building Companies, Mortenson, Skanska USA, DPR Construction, Whiting-Turner, and Clark Construction maintain additional top-tier commercial building operations. Healthcare, education, and office sectors represent the largest commercial building segments, with data center and life sciences laboratory construction growing rapidly.
Per the SBA Table of Size Standards[7], the size standard is $45 million in average annual receipts. International Building Code governs commercial and institutional construction with occupancy-specific requirements varying by building use, height, and area. ADA accessibility standards apply to all commercial and public buildings. OSHA[8] construction safety standards under 29 CFR 1926 govern all commercial job sites. NFPA life safety and fire code requirements establish suppression, detection, and egress standards based on occupancy classification and building size. Prevailing wage requirements under the Davis-Bacon Act apply to federally funded institutional projects. LEED and other green building certification programs increasingly influence commercial building design and construction specifications, with many institutional and government clients requiring sustainability certification.
What's Included in This Industry
- Office building new construction and tenant improvement
- School and educational facility construction
- Hospital and healthcare facility construction
- Retail and shopping center construction
- Hotel and hospitality building construction
- Religious building and worship facility construction
- Government and institutional building construction
- Stadium, arena, and entertainment venue construction
- Commercial building design-build services
- Construction management for commercial and institutional clients
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Construction of Buildings | 236 |
| Industry Group | Nonresidential Building Construction | 2362 |
| NAICS Industry | Commercial and Institutional Building Construction | 23622 |
| National Industry | Commercial and Institutional Building Construction | 236220 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 236210 | Industrial Building Construction | Industrial Building Construction uses similar general contracting and project management capabilities for manufacturing and warehouse facilities, with many commercial general contractors also performing industrial work and competing across both building types based on project size and client relationships |
| 236118 | Residential Remodelers | Residential Remodelers perform tenant improvement and building renovation work that parallels commercial building alterations in this classification, with mixed-use building projects creating overlap between residential and commercial construction scopes on the same structure |
| 541310 | Architectural Services | Architectural Services design the commercial and institutional buildings that general contractors construct, with architect-of-record firms producing construction documents that define the scope, quality, and performance requirements that commercial builders must execute during construction |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 11.1% | 4,334 |
| 2 | Texas | 9.2% | 3,600 |
| 3 | Florida | 6.9% | 2,685 |
| 4 | New York | 5.5% | 2,153 |
| 5 | Pennsylvania | 3.9% | 1,510 |
| 6 | Georgia | 3.4% | 1,336 |
| 7 | Illinois | 3.4% | 1,331 |
| 8 | Ohio | 3.0% | 1,186 |
| 9 | North Carolina | 2.9% | 1,137 |
| 10 | Michigan | 2.8% | 1,090 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
4,384
Total SBA Loans
$1.9B
Total Loan Volume
$430K
Average Loan Size
10 yrs
Average Loan Term
10.39%
Average Interest Rate
47,952
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Commercial and Institutional Building Construction (NAICS 236220) has a size standard of $45 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support bonding capacity, equipment acquisition, and business expansion for qualifying commercial construction firms. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 672 | $167.6M | $249K |
| 2 | The Huntington National Bank | 248 | $125.0M | $504K |
| 3 | Readycap Lending, LLC | 160 | $121.6M | $760K |
| 4 | JPMorgan Chase Bank, National Association | 448 | $119.9M | $268K |
| 5 | Live Oak Banking Company | 56 | $67.4M | $1.2M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for commercial building construction?
NAICS 236220 covers commercial and institutional building construction including offices, schools, hospitals, hotels, shopping centers, and government buildings per the U.S. Census Bureau[5].
What is the SBA size standard for commercial construction?
The SBA size standard[7] is $45 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the commercial construction industry?
Industry revenue reached $432.4 billion with $43.7 billion in annual payroll across 44,671 business locations per Census Bureau[6] economic survey data, making this the largest nonresidential building construction classification.
Who is the top commercial contractor?
Turner Construction ranked number one in the 2025 ENR Top 400 by revenue per industry ranking data, with McCarthy Building Companies, Mortenson, Skanska USA, DPR Construction, and Whiting-Turner among additional top-tier firms.
What ADA requirements apply to commercial buildings?
ADA accessibility standards apply to all commercial and public buildings per federal civil rights requirements, governing accessible routes, restrooms, entrances, elevators, signage, and parking across all occupancy types including offices, retail, healthcare, and educational facilities.
What green building certifications affect commercial construction?
LEED and other green building certification programs increasingly influence design and construction specifications, with many institutional and government clients requiring sustainability certification per U.S. Green Building Council standards that cover energy performance, water efficiency, materials selection, and indoor air quality.
What sectors drive commercial building demand?
Healthcare, education, and office sectors represent the largest commercial building segments per Census Bureau[6] construction spending data, with data center and life sciences laboratory construction growing rapidly due to technology industry investment and research facility expansion.
When do prevailing wages apply to commercial construction?
Davis-Bacon Act prevailing wage requirements apply to federally funded institutional projects per Department of Labor[13] regulations, covering public schools, government buildings, VA hospitals, and other commercial construction projects receiving federal financial assistance above applicable thresholds.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SBA Table of Size Standards sba.gov
- [8]OSHA osha.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]Department of Labor dol.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.