BRADENTON Aqua by the Bay, amaster-planned communityin west Bradenton, has announced plans to begin building the first section of homes in the development.

Aqua by the Bay's debut community, in a gated residential neighborhoodnamed Aqua, will include 104 upscale single-family homes, according to apress release. The builder, Bradenton-basedMedallion Home, throughAqua One BuildersLLC, recently closed on a $12 million line of credit with American Momentum Bank to help finance construction of the homes, the release adds.

This project is transformational for West Bradenton, says Carlos Beruff, owner of Medallion Home and apartner inAqua One Builders, in thestatement. Were excited because we have the largest tract of waterfront land on the west coast of Florida, with 13,000 feet directly on Sarasota Bay, and that makes this community unique.

Aqua by the Bay is a 529-acre master-planned developmenton El Conquistador Parkwaysouth of 53rd Avenue West. The development will include commercial, retail and residential areas, with plans for 2,384 multifamily units and 510 single-family homes. The Aqua community will feature a 4-acre crystal lagoon with a floating dock and beach. Residents and guests will be able to swim, paddleboard and kayak in the lagoon, the release states.

The community will have three models of homes,from 2,448 to 3,923 square feet. Homes are priced from the $600s.

Medallion Home has proven over many years that they are completely in tune with buyer preferences, building both beautiful and functional homes across a broad spectrum of price points, says Porter Smith, Tampa Bay market president of American Momentum Bank, in the statement. The Aqua community is arguably their most ambitious project to date, and we are very proud to be a part of it with them.

Horizon Mortgage Corp.of Sarasota was also involved in helping Aqua One Builders secure the $12 million builder line of credit. Kelly Gilliland, executive vice president of Horizon Mortgage, has worked with Beruff for more than 15 years, assisting Medallion Home with acquisition and development financing for several subdivisions, builder lines of creditand the financing of its office building/design center, the release states.

American Momentum Bank is a Texas-chartered banking association with total assets of $2.7 billion as of Aug.31, the statement says.

Semi-custom home builderMedallion Home Gulf Coast Inc. has builthomes and neighborhoods since 1984.Medallion Home reported $134 million in gross revenue in 2019.

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Construction to begin on first community in master-planned development - Business Observer

The Greater Phoenix Medical Office market has remained healthy during third quarter, despite an increase in sublease availability, according to a report from Colliers International. During the past three months, the market posted positive net absorption and a slight increase in rental rates, as well as maintaining vacancy below 15 percent. Continued population growth is expected to drive demand for healthcare and medical office space.

Approximately 87,913 square feet of positive net absorption took place during third quarter, marking the third consecutive quarter of positive net absorption this year. The Glendale submarket drove net absorption for the second consecutive quarter. That submarkets delivery and move-in of akos at akos Medical Campus Phase I led the overall market in the third quarter.

Vacancy rose 30 basis points over-the quarter to finish September at 13.7 percent. Vacancy in medical office space has risen 100 basis points year-over-year. Sublease space increased 17 percent over-the-quarter and now accounts for 1.3 percent of the entire medical office inventory.

Rental rates increased 1.4 percent over-the-quarter and 3.8 percent year-over-year, finishing September at $21.90 per square foot. Rental rates have increased 19 of the past 20 quarters. Central Scottsdale posted the largest rental rate increase year-over-year, increasing 10.1 percent to $26.59 per square foot.

The Phoenix medical office market added 106,000 square feet of new properties during third quarter, which averaged 47 percent vacancy. These new building are primarily located in the Glendale and Deer Valley submarkets. Approximately 56 percent of projects under construction are pre-leased, which will bode well for the vacancy rate to remain healthy with these additions. Speculative development will be paused for a few months because developers are cautiously awaiting return of workers to offices for many tenants.

Investment sales volume increased dramatically 250 percent during third quarter but has decreased 15 percent over-the-year to $40 million. The largest deal of the quarter was the $27 million sale of Scottsdale Gateway I. The median price paid for medical office buildings increased 152 percent during third quarter to $160 per square foot. That price is below the five-year average of $189 per square foot. Cap rates remained low at less than eight percent. Medical Office Condo sales favored investors during third quarter. Sales volume increased 67 percent year-over-year and 29 percent over-the-quarter to $15,945,314. The median price per square foot for Medical Office Condos finished the quarter at $233, which is a 9.4 percent increase year-over-year. Approximately 61 percent of Medical Office Condo sales took place in the Scottsdale and Southeast Valley submarkets.

While leasing activity slowed during third quarter, it is expected to improve again to close the year and for the first portion of 2021. As population is anticipated to increase 1.5 percent annually, Phoenix has become a priority market. The Medical Office market will thrive as the population grows, motivating more development, leasing and investment sales.

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Population growth expected to drive Phoenix medical office market - AZ Big Media

The final concrete pour for Landmark 7s parkade is taking place on Thursday, Oct. 22.

Its a major milestone for the massive project in the Landmark District in Kelowna, as the parkade will serve as the foundation for the 23-storey tower.

All seven levels of parking are integrated within the 23-storey class A office tower, making it both the largest parkade and office tower between Vancouver and Calgary, the Stober Group wrote in a release.

Located in midtown Kelowna, the Landmark District is the regions most important employment centre, with over 200 businesses employing approximately 3,500 employees between what is currently six towers in the live, work and play community [of Kelowna].

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The new business tower project is expected to be completed in the spring of 2022.

The building will feature 225,000 square feet of commercial space and will include a broad range of amenities, including restaurants, a fitness centre and a conference centre.

The Stober Group is a long-standing development company that has built retail, industrial and residential properties throughout the Okanagan.

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2020 Global News, a division of Corus Entertainment Inc.

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Construction of Kelowna's tallest office building hits milestone - Global News

Brooklyns 2004 rezoning made way for a new wave of commercial and residential development, transforming the predominantly industrial borough into New York Citys third-largest central business district and one of the nationstop markets for office construction activity. As of October, Brooklyn had more than 2.3 million square feet of office space under construction, according to Yardi Matrix data.

Most of the upcoming projects target creative businesses and small to midsize tenants. The largest share of underway properties includes redevelopments and adaptive reuse projects of former factories, while mixed-use developments also take up a significant portion of a pipeline. The table below highlights the largest properties underway, based on Yardi Matrix data.

In March 2015, Maimonides Medical Center started work on its Medical Arts Building, a 140,000-square-foot medical office property in the Borough Park neighborhood. Upon completion, scheduled for the last quarter of 2020, the $100 million project will house more than 100 exam and consultation rooms for the nonprofits medical, surgical and pediatric subspecialties. The owner selected Gensler Architects to spearhead design services and Americon Construction for construction work. The new building is situated at 4813 49th St., close to a wide array of prospective office facilities such as 5402 Fort Hamilton Parkway and Sunrise Plaza.

Developed by Baruch Singer, the upcoming 10-story project in Midwood is one of the largest office assets emerging in the borough. Construction on the 143,736-square-foot mixed-use property started in February 2019, with completion scheduled for the first quarter of 2021. The development is backed by multiple construction loans totaling $39 million, funded by Vernon Capital Funding and Bank Leumi.

SHoP Architects designed the project, which will encapsulate three floors of medical offices, three floors of nonprofit offices and two floors of coworking space. Furthermore, the building will include 3,341 square feet of retail and restaurant space, a food hall, a community center and two levels of robotic underground parking.

Last July, Savanna broke ground on 141 Willoughby St., a 363,336-square-foot asset with a 53,259 first-floor retail component. The 23-story project is scheduled for completion in the third quarter of 2022. The development team includes Gilbane Building Co. as the general contractor and Fogarty Finger ArchitectsandSLCE Architectsas architects of record. The asset is rising in downtown Brooklyn, on the site of a former three-story building once home to the Institute of Design and Construction.

Also in downtown Brooklyn, JEMB Realty is currently developing 1 Willoughby Square, the first ground-up office project the submarket has seen in decades. The 500,000-square-foot, 34-story building is expected to come online in the last quarter of 2020 and is funded by a 235 million construction loanprovided by Otera Capital.

FXCollaborative handled the design services and will also be a tenant in the building, having already signed a 40,000-square-foot lease. The asset will include a 300-seat school across six floors, which will be occupied by The New York City School Construction Authority.

The largest property on the list is the adaptive reuse of aformerprinting press factory within Brooklyns Wallabout Historic District. RXR Realty chose Marvel Architects to handle the restoration of the 673,958-square-foot,10-building project, expected to be finalized in the last quarter of 2020. The development received $163.6 million in construction financing from Starwood Capital Group.

The buildings range between 43,868 and 255,409 square feet, with Building B being the largest within the complex. The Hall takes up an entire block where DUMBO, Williamsburg and the Brooklyn Navy Yard converge, and sits along the Brooklyn Waterfront Greenway.

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Top 5 Office Projects Under Construction in Brooklyn - Commercial Property Executive

Values-driven real estate developer, project^, Meyer Memorial Trust and awardwinning design firm, LEVER Architecture, has announced the completion and official opening of the new Meyer headquarters in Portland. Underscoring the brand values of each partner, the 14-month project has embraced a unique and ambitious approach that prioritizes equity across its workforce and an unwavering commitment to environmental sustainability.

The new headquarters featuring mass timber is located at 2045 North Vancouver Avenue within Historic Albina, long home to Portlands Black communities. The $10.8 million, 19,829 sq. ft. building includes a three-story office structure that stems from an equity-centered design approach with a focus on collaborative office space.

Building exterior and public entry (Photo credit: Jeremy Bittermann)

View of the Center for Great Purposes from the Kwnsm Yakw Garden (Photo credit: Jeremy Bittermann)

The buildings street presence is transparent and welcoming (Photo credit: Jeremy Bittermann)

Front Desk Reception featuring custom artwork Mother and Child by Natalie Ball (Photo credit: Shawn Records)

Welcome Area featuring artwork Veiled Prophet/Profit by Addoley Dzegede (Photo credit: Shawn Records)

The Center for Great Purposes is a convening space made from Mass Plywood Panels (Photo credit: Jeremy Bittermann)

Mass Plywood staircase (Photo credit: Jeremy Bittermann)

Lunchroom (Photo credit: Shawn Records)

Lunchroom and Roof Garden Terrace featuring custom mural Kapashayat Tkwal by artistToma Villa (Photo credit: Jeremy Bittermann)

Workspaces have equal access to daylight and views (Photo credit: Shawn Records)

Kimberly Wilson, Communication Director in an Office/Meeting Room (Photo credit: Jeremy Bittermann)

Mission Library (Photo credit: Jeremy Bittermann)

Michelle J. DePass, President and CEO of Meyer Memorial Trust, on video call with Phoebe OLeary, Director of Business Systems and Operations, in the Eva & Fred G. Meyer Boardroom (Photo credit: Jeremy Bittermann)

Bust of Fred G. Meyer (Photo credit: Shawn Records)

Mass Plywood Detail (Photo credit: Courtesy LEVER Architecture)

Mass Plywood Construction (Photo credit: Shawn Records)

Mass Plywood Construction (Photo credit: Courtesy LEVER Architecture)

Project Leadership (left-to-right): Michelle J. DePass, President and CEO of Meyer; Toya Fick, Chair of Meyers Board of Trustees; Anyeley Hallova, Partner at project^; Chandra Robinson, Project Director at LEVER; and Maurice Rahming, Principal in Charge at ONeill/Walsh Community Builders. (Photo credit: Fred Joe)

Construction team member from ONeill Construction Group; 30 percent of journey people and apprentice hours were completed by minorities and 10 percent by women (Photo credit: Fred Joe)

Construction team member from Bridgeport Interiors (Photo credit: Fred Joe)

Building exterior and public entry (Photo credit: Jeremy Bittermann)

View of the Center for Great Purposes from the Kwnsm Yakw Garden (Photo credit: Jeremy Bittermann)

The buildings street presence is transparent and welcoming (Photo credit: Jeremy Bittermann)

Front Desk Reception featuring custom artwork Mother and Child by Natalie Ball (Photo credit: Shawn Records)

Welcome Area featuring artwork Veiled Prophet/Profit by Addoley Dzegede (Photo credit: Shawn Records)

The Center for Great Purposes is a convening space made from Mass Plywood Panels (Photo credit: Jeremy Bittermann)

Mass Plywood staircase (Photo credit: Jeremy Bittermann)

Lunchroom (Photo credit: Shawn Records)

Lunchroom and Roof Garden Terrace featuring custom mural Kapashayat Tkwal by artistToma Villa (Photo credit: Jeremy Bittermann)

Workspaces have equal access to daylight and views (Photo credit: Shawn Records)

Kimberly Wilson, Communication Director in an Office/Meeting Room (Photo credit: Jeremy Bittermann)

Mission Library (Photo credit: Jeremy Bittermann)

Michelle J. DePass, President and CEO of Meyer Memorial Trust, on video call with Phoebe OLeary, Director of Business Systems and Operations, in the Eva & Fred G. Meyer Boardroom (Photo credit: Jeremy Bittermann)

Bust of Fred G. Meyer (Photo credit: Shawn Records)

Mass Plywood Detail (Photo credit: Courtesy LEVER Architecture)

Mass Plywood Construction (Photo credit: Shawn Records)

Mass Plywood Construction (Photo credit: Courtesy LEVER Architecture)

Project Leadership (left-to-right): Michelle J. DePass, President and CEO of Meyer; Toya Fick, Chair of Meyers Board of Trustees; Anyeley Hallova, Partner at project^; Chandra Robinson, Project Director at LEVER; and Maurice Rahming, Principal in Charge at ONeill/Walsh Community Builders. (Photo credit: Fred Joe)

Construction team member from ONeill Construction Group; 30 percent of journey people and apprentice hours were completed by minorities and 10 percent by women (Photo credit: Fred Joe)

Construction team member from Bridgeport Interiors (Photo credit: Fred Joe)

Investing in a permanent space is a commitment as an Oregon-serving foundation, we wanted to deepen our connection to Historic Albina and use our new building as a resource to further support and invest in communities across the state, said Michelle J. DePass, Meyers president and CEO.

Typically, architecture in philanthropy is hierarchical, with the best spaces reserved for executives.

"But as a justice foundation that places a premium on equity, it was important to give every employee access to windows and natural light and to make the most desirable office space accessible to everyone.

Reflecting a deep commitment to diverse representation and equitable outcomes across its workforce, the project team developed rigorous minority and women-owned business participation goals to ensure every aspect of Meyers new headquarters reflected the most robust goals for the Portland business community.

project^ and LEVER joined forces with a collective of strong industry expertise to drive the projects success and reflect the core equity and sustainability values. The expanded team included O'Neill/Walsh Community Builders, 2.ink Studio, KPFF Consulting Engineers, Glumac, Standridge Design and Ditron.

In addition to the diverse team leading the build, 47% of the Meyer headquarters construction budget went to women- and minority-owned subcontractors, while 30% of the journey people and apprentice hours were filled by minorities and 10% of the hours were filled by women. Additionally, 80% of the subcontractors on the site were either women- and/or minority-owned businesses; with 20% being stretch opportunities to give smaller companies the opportunity to grow and expand their portfolio.

To foster greater collaboration with the community it serves, Meyers ground floor houses the Center for Great Purposes," a convening space that accommodates up to 100 people. Envisioned as a welcoming hub for partners across Oregon and beyond, the center showcases Mass Plywood Panels (MPP) sourced from a central Oregon timber manufacturer, making it one of the first buildings in the country to use this next-generation wood product.

A re-envisioned art collection and branded story moments are featured throughout the building with accent pieces that represent Meyers commitment to all Oregonians while honoring the diverse histories, people, and communities of the region. The Mission Library features inspirational quotes from leaders, including Fred Meyer, and showcases a curated collection of fiction, non-fiction, poetry, and scholarship that touch on aspects of diversity, equity and inclusion.

A former industrial tow lot, the site covers 24,937 sq. ft. and was reimagined to include an outdoor plaza, eco roof, and the Kwnsm Yakw Garden, a healing garden and fountain. The landscape design acknowledges local ecology, community history and regional identity and serves as an educational setting for staff and visitors. Indigenous plant species were selected due to their historical significance as a primary food, medicinal, or commodity resource for Columbia River tribes.

In pursuit of the teams ambitious goals around energy efficiency and building innovation, the building is targeting LEED Platinum certification and is enrolled in the Energy Trust of Oregons Path to Net Zero program. The headquarters employs a number of strategies for achieving this status, including a unique roofline specifically designed to maximize energy production from a 50kW rooftop solar array.

The inclusive design process included input and decision-making from staff at all levels of the organization, said Anyeley Hallov, partner at project^.

Our work has focused on realizing a building that is the embodiment of Meyers leadership in the equity and environmental space and is conscientious in its sourcing and construction to realize urban and rural economic benefit.

Given Meyers strong commitment to environmental sustainability and social equity, the foundation partnered with nonprofit Sustainable Northwest to develop a holistic, hyper-local wood sourcing approach. They jointly established specific criteria for the wood used in the buildings construction with a focus on wood innovation, regionally harvested and locally manufactured materials, and wood sourced from intentionally managed forests.

As a result, the project team contracted with six minority and women-owned businesses and seven small family-owned wood products companies to achieve a Sustainable Wood classification for 855 of the wood used in the building.

The main design driver for the Meyer project was to create a welcoming campus that enables staff to do their best work, connects to the neighborhood in a meaningful way, and creates opportunities to engage with all Oregonians, said Chandra Robinson, project director, LEVER Architecture. The building design is a reflection of Oregon through regionally harvested and locally manufactured materials, including mass plywood a pioneering, next-generation timber product.

About Meyer Memorial Trust

One of the largest private funders in Oregon, Meyer Memorial Trust commits its position, resources, and energies to dismantling barriers to equity and improving community conditions so that all Oregonians can reach their full potential.

Established in 1982 from the estate of Fred G. Meyer, Meyer has awarded grants and program-related investments in excess of $834 million to more than 3,432 organizations. With current assets of approximately $840 million, Meyer focuses on work in Oregon in four areas Oregonians have identified as crucial to making the state better for all its residents: housing, education, the environment, and building stronger communities.

Meyer also funds ongoing work to buttress education policy, research and engagement by the Chalkboard Project. Meyer is a founding member of the Oregon Immigrant and Refugee Funders Collaborative, which addresses crucial and time-sensitive issues facing immigrants and refugees across the state. In July 2020, Meyer launched Justice Oregon for Black Lives a five-year, $25 million investment in Black leadership, Black-serving organizations, and systems-level change. These efforts and those on the horizon, support Meyers vision of a flourishing and equitable Oregon. Learn more about Meyer athttps://mmt.org/meyerhq.

About project^

Project^ is a values-driven real estate developer providing resources, practices and stewardship for their partners. They maximize environmental, social and economic benefits inherent in meaningful places and create opportunity, buildings and legacies through sound business and ecological practices. Project^ has a broad portfolio of experience, having planned, financed and executed more than 20 projects. Notable work includes the Oregon Conservation Center and the research and development for Framework, an award-winning project nationally and locally in recognition of its innovative, sustainable design and pioneering research. For more information visithttp://projectpdx.com.

About LEVER Architecture

LEVER Architecture is a 30-person design practice based in Portland, Oregon. The firm is widely recognized for material innovation and for pioneering work with mass timber construction. Their projects encompass first-of-their-kind wood buildings for clients such as The Nature Conservancy and Adidas and include more than $1M in research to develop and test timber building assemblies. LEVER was recently recognized by Fast Company as one of the worlds most innovative architecture firms. For more information, visit http://leverarchitecture.com.

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Meyer Adopts Advanced Equity and Sustainability Approach in Construction of New Portland Headquarters - The Skanner

When the coronavirus pandemic first broke out in the U.S., flattening the curve became the mantra for helping to support hospitals and save beds for patients who most needed them. Some hospitals even wrapped up parts of construction early to make more room for COVID-19 patients.

Construction Dive has tracked some of the largest medical center projects that have been announced, funded or underway often before the COVID-19 pandemic. Here is a look at the biggest healthcenter projects across the country.

In response to overcrowding, the Childrens Hospital of Philadelphia announced plans in May to pump $3.4 billion into new construction,The Philadelphia Inquirer reported. Included in those plans, CHOP intends to construct a 22-story inpatient tower, adding 300 beds, with room to add 200 more as needed.

The tower will cost $1.7 billion and open in 2027, and CHOP has plans for three additional buildings.

Courtesy of Ohio State University

The $1.79 billion Ohio State Wexner Medical CenterInpatient Hospital is scheduled to open in early 2026. The 1.9 million-square-foot facility is the largest single-facility project ever undertaken at Ohio State University, and will have up to 820 beds in private room settings, for the training of future physicians. A Walsh/Turner Joint Venture is serving as construction manager on the project.

Permission granted by Harborview Medical Center

In January, the Harborview Medical Centers planning group recommended and backed plans for $1.74 billion in upgrades for the Seattle hospital, The Seattle Times reported. Recommendations and plans include $952 million for a new hospital tower, a $79 million behavioral health building and various other renovations. Harborview is owned by King County and operated by the University of Washington.

King County voters will decide in the Nov. 3 election whether the project can move ahead.Proposition No. 1would approve bonds to fund the project and would authorize property-tax increases to repay the bonds over 20 years.

Courtesy of Indiana University Health

Indiana University Health announced plans in August to build a new $1.6 billion hospital in downtown Indianapolis. The new hospital will be just south of IU Healths 100-year-old Methodist Hospital.

The new hospitals preliminary blueprint lays out three glass-fronted towers, each about 10 stories with a rooftop helipad and enclosed walkways to nearby buildings and a parking garage. The towers will hold up to 576 private patient beds and outpatient care areas. Parts of the Methodist complex will connect to the new hospital via walkways, providing more beds and exam rooms.

When complete in 2026, the new, 44-acre hospital will be consolidated with the Methodist Hospital and will also house IUs School of Medicine.

Courtesy of UCSF

In 2018, the University of California, San Francisco received a $500 million donation from the Helen Diller Foundation to help fund the $1.2 billion hospital at the Universitys Parnassus Heights campus.

In July, UCSF announced Herzog & de Meuron as the lead designer and HDR as the architect of the hospital. When the project is finished in 2030, it will increase the number of beds in the UCSF system by 42%.

Brooklyn Hospital Center has proposed a $1 billion planto redevelop its 175-year-old facility. The project requires the demolition of existing buildings and replacing them with about 800,000 square feet for hospital use. That space will include new cancer, ambulatory surgery and outpatient diagnostic centers while also expanding the emergency room, maternity ward and cardiac cancer and breast cancer facilities.

The proposal would also add new office spaces for doctors and healthcare professionals as well as about 1,000 units of affordable housing, along with mixed-income units, geared mostly for hospital staff and nearby residents.

In May, the City of Hope National Medical Center acquired a 190,000-square-foot office space and surrounding acreage in Irvine, California. City of Hope has plans to immediately convert the acquisition into a $1 billion comprehensive cancer center, the first outside of the main Duarte, California, campus.

City of Hope is developing the campus in partnership with mixed-use owner and developer FivePoint. The 11-acre campus is expected to open in 2025, and will include an outpatient center for screenings and a clinical research center.

In February, a state planning council approved Mount Sinai Health Systems plan to invest $1 billion in upgrades and expansions in downtown New York City. Work is planned for the New York Eye and Ear Infirmary, in addition to a replacement facility for Mount Sinai Beth Israel and a behavioral health center.

The replacement facility, for which the Health System has earmarked $600 million, will have 70 beds and a new emergency room two blocks from the existing Manhattan location. The new behavioral health center will cost about $140 million and add 135 beds

Link:
8 hospital megaprojects in the US - Construction Dive

More than 10 months since the first coronavirus cases were reported in Wuhan, China, COVID-19's global spread continues to plague commercial construction.

Since the pandemic hit the U.S.,contractors across the country have faced a range of obstacles including layoffs, project shutdowns and increased construction costs.

As 2020 comes to a close, economists and industry experts predict many of these issues will continue to challenge contractors. Here are the top seven factors to watch:

Labor shortage. Pre-pandemic, the industry faced a historic shortage of skilled labor and the issue isn't going away just because COVID-19 has shut down projects and slowed others. Although firms have been calling back workers who were laid off in the spring,some have refused to return to work, citing a preference for unemployment benefits, virus concerns or family responsibilities.

Looking ahead to once a recovery begins, labor gaps might get even larger,especially in states like California, Texas and New York, according to Daniel Pomfrett, vice president of Los Angeles-based project management and cost consulting firm Cumming Corp.Lack of worker migration especially to expensive markets with greater job opportunities like California and New York also aggravates the labor shortage,Pomfrett said.

Shrinking backlog.Associated Builders and Contractors'Construction Backlog Indicator fell to 7.5 months in September, a decline of 0.5 months from Augusts reading and 1.5 months lower than last year at this time.In addition, the association's Construction Confidence Index readings for sales and profit margins also decreased.

The months ahead don't look hopeful for contractors looking to add to their backlog of work, said ABC Chief Economist Anirban Basuin a release about the indicator.

ABCs survey data indicate that we are in the early stages of a nonresidential construction spending downturn, he said. With few exceptions, declines in backlog have begun to accelerate across all markets and regions.

Falling construction costs.A variety of pandemic-related forces have caused construction costs to decline slightly for the first time in a decade, which could lead contractors to feel a pinch in profits.

The Turner Building Cost Index, which measures costs in the U.S. nonresidential building construction market, fell to a value of 1171 in the third quarter of 2020,a 1.5% quarterly reduction from the beginning of the year. This year marked the first time the index from Turner Construction has reduced in value since 2010.

Trade contractor competition has increased in many areas as they work to secure backlog due to uncertainty they have about future opportunities,"said Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index in a press statement.

Less work.Various sectors of commercial construction will continue to experience a decline even after the rest of the economy begins to recover from COVID-19, economists say. For instance, experts predict people will continue to work from home more often then they go into a central office, so construction of office buildings remains a gray area in terms of future growth.

The construction of new healthcare facilities also could drop significantly because of changes in lifestyles post-COVID-19, according to Ken Simonson, chief economist for the Associated General Contractors of America.

Hospital use dropped off drastically in the spring and its not certain if visits for elective surgery and other non-essential procedures will come back, Simonson said.Or will we see growth of alternative medical care through urgent care or surgery centers?"

He also questioned if nursing home construction would fall because people might be more hesitant to check themselves or family members into the facilities.

Travel and hospitality sectors, along with sports or performance venues, also look grim according to Simonson. That's primarily because their revenue sources sales taxes, convention income and tolls are taking a big hit and arent expected to get replenished anytime soon as the pandemic begins a third wave of intensity.

Price increases. This year has seen fluctuations in the prices of construction materials, most recently with the skyrocketing cost of lumber. Prices have been rising on most materials since May, according to ABC.

Its September look at prices found that among 11 subcategories, eight experienced monthly increases. As construction comes back online around the world, increasing demand for products could keep prices on the rise, Basu said.

"Despite the lingering pandemic, the global economy has been recovering, increasing demand for key commodities," he said. "Rapid viral spread, including in Europe and parts of North America, render materials shortages more likely during the winter months."

Some contractors are taking proactive steps to expand their supplier network as well as buying hedges on some materials to protect from upward price swings, according to Joe Natarelli, leader of the national construction industry practice at accounting firm Marcum.

Supply chain issues."Production is getting back to where it was internationally, Pomfrett said, but the strain on supply chains and how to get materials and equipment delivered remains."

Natarelli said his clients are building resiliency into their supply chains so that theyre not beholden to a single supplier for any one material.

The days of having one material supplier are gone, he said. Were seeing clients setting up three separate suppliers, in different geographic locations, where in the past they may have had just one or two. Some are even getting as many as five in place.

Plus, the pandemic caused a decline in shipping as well as air travel, which means less air freight gets moved so even the reduction in moving materials across state lines has caused issues, he said.

Diminished state and local government revenues. Basu said this is one of the top challenges facing contractors right now. A report from the Brookings Institution projectsthat state and local government revenues will decline $155 billion in 2020, $167 billion in 2021 and $145 billion in 2022 about 5.5%, 5.7%and 4.7%, respectively excluding the declines in fees to hospitals and higher education.

This means that state agencies such as departments of transportation have less money to fund infrastructure initiatives like roads, bridges and transit projects. Many will look to the federal government for additional revenue.

At the New York Metropolitan Transportation Authority, some upcoming projects are in limbo as the authority awaits word on whether it will receive federal funding in addition to the $3.8 billionit received in April under the Coronavirus Aid, Relief and Economic Security Act.Industry estimates show that even with the CARE Act funds, the MTA faces at least an $8.5 billion shortfall for 2020 and 2021.

MTAs financial position has eroded dramatically since the outbreak began,Janno Lieber, MTA chief development officer said this summer,noting that the authority is losing about $800 million a month in revenue due to the crisis.

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7 coronavirus-related construction challenges that will continue in 2021 - Construction Dive

Sterling Bay CEO Andy Gloor and 1515 West Webster Avenue (Google Maps)

Sterling Bay has an agreement to sell an office building on the north-end of its Lincoln Yards megadevelopment for $111 million, a positive sign for Chicagos sluggish office market.

Apex Capital agreed to buy the 207,000-square-foot property at 1515 West Webster Avenue on behalf of a Middle Eastern capital partner, according to Crains. The partner was not named.

The four-story building sits along the Chicago River and is home to the logistics firm C.H. Robinson, which recently signed a 15-year lease at the building.

Sterling Bay tapped Cushman & Wakefield to list the site in early March, just before the coronavirus outbreak, with a projected price of $120 million, according to reports at the time.

Sterling Bay broke ground on the Webster Avenue building before it revealed its plans for Lincoln Yards. The Chicago-based development group paid $21.3 million in 2015 to buy the 4-acre site. It secured an $82.5 million construction loan for the project in 2016, according to Crains.

The Webster Avenue sale is the second high profile sale for Sterling Bay in recent weeks. The company also has an agreement to sell its Fulton Market office building that houses the McDonalds headquarters for about $430 million. The buyer is a family office in Pittsburgh.

Sterling Bay received approval from the city in March 2019 to build the $6 billion mixed-use Lincoln Yards. Plans for the megaproject call for 14.5 million square feet of office, retail and residential space on former industrial land along the North Branch of the Chicago River.

Chicagos office market has languished since the onset of the pandemic as many office workers continue to operate from home. Available office sublease space in the city reached a record 4.6 million square feet in the third quarter, according to MB Real Estate. The total office vacancy rate climbed to just under 16.6 percent, the highest its been in a decade. [Crains] Keith Larsen

Read more:
Sterling Bay will sell Lincoln Yards office building for over $100M - The Real Deal

Extell Development Company will begin construction of its Class A office building in New Yorks East Harlem. Dubbed Harlem Headquarters, the new structure will have nine floors and its construction is expected to commence early next year with its completion scheduled for late 2022.

The new office block will have offer 441,600 sf of Class A office space and will also include a 7,500-sf roofdeck terrace and a 40,851-sf community center. Designed by Gensler, Harlem Headquarters will have 56,000-sf floor plates that can be portioned into three sections.

According to Rose Disarno, Associate and Design Lead at Genslers New York office, the building will have layouts that can be customized for tenants. In addition, each space will be allocated its own terrace outside.

Disarno further indicated that Harlem Headquarters has a smart design, which includes MIRV-14 filters installed throughout the building and a solar array installed on the roof.

Cushman & Wakefield has been appointed to serve as the buildings marketing agent with its leasing expected to start late this year. Disarno noted that the buildings roofdeck will be a very important amenity even as more workers return to office time office life following the COVID-19 pandemic.

Harlem Headquarters is in a strategic location with several subway stops and is also expected to have access to the Metro Line rail line that serves several suburbs. The full cost of the buildings construction has not been disclosed but its construction team will include JM Zoning (zoning), Longman Lindsey (acoustics), Matthews Nielsen Landscape Architects (landscaping), Bright Power (renewable energy), IBA Consultants (faade), Philip Habib + Associates (CE), AKF (MEP and lighting), GMS (SE), and Monadnock (GC).

According to Gary Barnett, the chairman and founder of Extell, the company has been exploring several options of having property in East Harlem. The land where Harlem Headquarters will stand was acquired in 2014 at a cost of $39 million.

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Extell to start construction of its Harlem Headquarters in New York - Construction Review

Construction of public restrooms in Damariscottas municipal parking lot will begin in early November, according to the contractor.

Charlie Frattini, of Rockport-based Phi Builders + Architects, hopes to start setting up a chain-link fence around the project area Monday, Oct. 26, he said during a Zoom meeting Monday, Oct. 19.

The contractor will limit disruption as much as possible, Frattini said. The contractor has been communicating with abutters to the site.

The Zoom meeting included Damariscotta Town Manager Matt Lutkus; Robin Mayer, chair of the board of selectmen; Jan Wiegman, of the engineering firm Wright-Pierce; representatives from Phi Builders + Architects; and downtown business and property owners.

The restrooms will be behind Cupacity, where a barbershop previously stood. The building will face the water and will sit about 3 feet above the existing grade of the lot on wooden piles.

Rob Mattes, of Phi Builders + Architects, said driving in the wooden piles will be the loudest part of the project and all abutters will be notified ahead of time.

The construction crew will work from 7 a.m. to 5 p.m. Monday-Friday and will use a small number of parking spots adjacent to the site as a staging area.

Frattini said the crew will not take up any spots Nov. 7, the day of Damariscottas annual Early Bird Sale.

The contractor aims to complete enough of the masonry and roof work to allow its workers to move inside during the coldest part of the winter.

Frattini said that with a possible break in the winter, the latest completion date would be July 4, although he does not expect to do any heavy work past the end of May.

Phi Builders plans to rent office space in the downtown area to serve as a base of operations.

Chase Excavating Inc., of Falmouth, will begin work on replacing the sewer lines in the parking lot around the same time, Lutkus said. He said that work should be complete by Thanksgiving.

Lutkus has said that Chase Excavating will work on no more than 200 feet of the project at one time and will cover its work each evening, so the parking lot will remain accessible for the duration of the work.

The replacement of the sewer lines and the construction of the restrooms are part of a $4 million-plus waterfront improvement project.

The project will also include raising and rebuilding the parking lot, drainage improvements, and construction of a seawall.

The U.S. Economic Development Administration awarded the town a $3 million grant in April to cover the majority of the cost. The town is contributing $1,127,000, largely from donations.

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Construction of Damariscotta Restrooms to Start in Early November - The Lincoln County News