The Grand at 130 S. Grand Ave. is a mixed-use project being developed by Related Cos. It will have more than 400 units.

Those cranes that have become a fixture of the downtown skyline arent going away anytime soon.

The area has delivered more than 50% of L.A.s new rental units since 2018, and that pace is expected to continue in 2020.

At the same time, average rents in the area have increased a mere 1% compared with an 8% increase citywide, according to the Downtown Center Business Improvement District.

Were delivering a record number of units, but over time, downtown is able to absorb them, said Nick Griffin, executive director of the DCBID.

Projects that have been on the market for a year are already seeing occupancy rates of 90% and higher, he added.

The market remains strong downtown, said Laurie Lustig-Bower, an executive vice president at CBRE Group Inc. We would expect that even with the buildings that they are forecasting to build, that are coming on, that the market would absorb them.

The third quarter saw fewer units delivered than in previous quarters, which Griffin said helped with occupancy rates.

During the third quarter, there were 5,744 residential units under construction and an additional 33,315 units proposed, according to DCBID data. Griffin said roughly 1,200 units would open by the end of the year.

Multiple projects

Projects under construction now include Park Fifth, a property with nearly 350 units and retail space being developed by MacFarlane Partners; 1133 S. Hope St., a property with roughly 200 units and retail being developed by Z&L Properties Inc.; The Grand, a massive mixed-use project being developed by Related Cos.; and Oceanwide Plaza, a $1 billion project being developed at 1101 S. Flower St.

The high number of units coming online, Griffin said, helps with affordability.

Across the city and the region, rents continue to rise because of the shortfall of supply, he said. Downtown L.A. is a perfect case study of what happens when you deliver more supply.

Brokers expect the units coming online to be filled quickly.

Were only running at a six-week vacancy period, said Kitty Wallace, an executive vice president at Colliers International Group Inc.

Lustig-Bower said there is a severe shortage of units compared to the workforce in downtown, adding that the large number of units in the works would likely be absorbed.

Condos cooling

The number of condo sales downtown tells a slightly different story.

In the third quarter, 79 units sold for an average price of $690 per square foot, compared with 99 units for $723 per square foot the same time the previous year, according to DCBID data.

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Downtown on the Upswing - Los Angeles Business Journal

Developers have submitted their first detailed plan to begin transforming 10 acres of former industrial land along Portlands eastern waterfront.

Portland Foreside Development Co. filed a site plan application for the first phase of development of the former Portland Co. complex. That phase will touch three out of the six development blocks at 58 Fore St., plus the construction of a public plaza that will connect Fore Street to the waterfront.

The initial phase will include a new office building on the westernmost portion of the site that is expected to be used by Sun Life U.S. and its subsidiary FullscopeRMS. Sun Life would join the payment processing firm Wex, which relocated to that area earlier this year. It will also include a local market hall, event space, housing, structured parking and other restaurant, retail and service uses.

As a whole, this proposed development presents an unparalleled opportunity to grow the citys tax base, add housing, and create jobs, the application states.

A neighborhood meeting has been scheduled on Monday from 5-6 p.m. at the St. Lawrence Arts Center on Congress Street. And the Planning Board will conduct its first workshop on Tuesday.

The development of the former Portland Co. complex has been in the works for years.

Founded in 1846, the Portland Co. complex was built to connect Portland to Montreal by rail and was the first locomotive factory in the United States that brought all of the necessary shops and a foundry together on one site. It remained in operation for 137 years and was deemed eligible for the National Register of Historic Places in 1976.

The redevelopment efforts began with a controversial rezoning process in 2015 that prompted area residents to launch a citywide referendum to protect waterfront views that was ultimately rejected by voters.

A master development plan was approved in late 2016, locking in key programming and land uses.

At full build-out, the plan calls for 638 units of rental and resident-owned housing, 132 hotel rooms, nearly 60,000 square feet of retail space, a new marina and nearly 124,000 square feet of office space. A total of 736 parking spaces are proposed for the site, mostly on the ground floors of the buildings.

At least 10 percent of the housing units would have to be made affordable to middle-income residents. However, the developer could buy its way out of that requirement for $105,000 per unit. More than $6 million could be infused into the citys housing trust fund, which provides incentives for affordable housing developments.

Development activity has been evident this year.

Over the summer, crews demolished buildings that were deemed to be noncontributing structures within the newly created Portland Company Historic District. Crews dismantled the historic Pattern Storehouse brick by brick so it could be rebuilt during this phase closer to the waterfront, where its expected to become a restaurant.

A new marina was also completed over the summer.

The citys Development Review Services manager, James Rather, said last week that the staff was still working its way through the weighty application ahead of the Planning Boards first workshop on Tuesday. Rather said the staff in the citys bustling planning office was like a snake trying to digest a wolf.

Its a big project, Rather said. Were still learning about the project. Its still early, and there will be multiple workshops on this.

Casey Prentice, a principal for the Portland Foreside Development Co., did not respond to requests for an interview on Wednesday or Thursday.

According to the project description, phase one will touch three of the six development blocks.

The westernmost parcel, Block 1, is located at the end of the newly constructed portion of Thames Street.

A new, 95,100-square-foot office space for Sun Life with ground floor retail is proposed for the upland side. And a reconstructed Pattern Storehouse, or Building 12, is proposed along the waterfront and is expected to be occupied by Evo restaurant with office space and two residential units above it.

Block 2 is located in the center of the site and referred to as the historic core.

Plans call for the restoration of seven historically significant buildings. One of the buildings is described as Market Hall, which will showcase local food and beverage vendors, chefs and culinary-focused entrepreneurs and retail space. The upper floors will consist of 17,900 square feet of event space and 12,400 square feet of office space. A total of 35,900 square feet of space will be devoted to retail, restaurant and other service uses on this block.

Blocks 1 and 2 will be separated by a public plaza that will be constructed within a 50-foot-wide public easement. The project summary states the plaza will include an expansive public upper viewing level and a public lower plaza to provide for the enjoyment of views of both the rehabilitated buildings of the Portland Company Historic District and Casco Bay.

Block 4 is located to the east of the historic core and comprises the last upland redevelopment site.

There, developers are proposing to build a five-level parking garage for 652 vehicles. The garage will be used as a foundation for a future residential building that will be built on top during a future phase. But the first phase includes 12 units of housing, totaling 12,900 square feet, along the west side of the garage. Its unclear what type of housing that will be. And the south side of the garage will include 1,100 square feet of retail, restaurant and services uses.

The application also includes plans to relocate a portion of the Narrow Gauge Rail Roads rail line farther inland, so an existing pathway can be relocated closer to the waterfront.

From a planning perspective, its a transformative project for that area of the city so its pretty exciting to see, Rather said.

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Developer seeks permit to begin ambitious redevelopment on Portland waterfront - Press Herald

It was in June 2016 that the former Orchard Hills Golf Course property on Ga. Highway 16 on Newnans southeast side was rezoned as a major industrial and commercial site. Today, the property is about to become the home of a 1.5 million sq. ft. Goodyear Tire and Rubber distribution and warehouse facility. Thats the equivalent of a facility covering more than 34 acres.

Coweta County Development Authority President Trae Westmoreland on Nov. 21 said Goodyear is consolidating facilities around the metro Atlanta area and will be locating at a 1.5 million sq. ft. distribution and warehouse facility on the property of the former Orchard Hills Golf Course on Hwy. 16. Thats in the triangle formed by Interstate Highway 85, Ga. Highway 16 and Turkey Creek Road, less than two miles south of the Piedmont Newnan Hospital complex and just southeast of downtown Newnan.

The new development is expected to bring up to 250 jobs to Coweta, Westmoreland said.

The facility being built to accommodate Goodyears needs represents a $140 million investment, Westmoreland said.

Westmoreland said the infrastructure for the development has been completed, with the expectation that construction could begin in the near-term, and with a construction period of approximately 12 months.

The property is adjacent to Interstate 85 and is in close proximity to the recently completed extension of the Newnan Crossing Bypass and the I-85 interchange at U.S. Highway 29.

The Coweta County Commission in June 2016 voted to rezone the 281-acre former golf course site to accommodate 3 million sq. ft. of industrial property and 300,000 sq. ft. of retail space along Hwy. 16.

Original post:
New Goodyear plant in Coweta to bring 250 jobs - The Citizen.com

Culdesac Tempe will have courtyards built into the design.

A San Francisco-based developer aims to create the countrys first car-free community in Tempe, Arizona, from the ground up. Culdesac, which bills itself as the worlds first post-car real estate developer, is building a 1,000-person neighborhood called Culdesac Tempe.

In a car-centric society, the implications for this ambitious vision are far-reaching. Culdesac intends to establish a vibrant people-focused neighborhood and lead the way for the future of planning for urban communities. Culdesac Tempe has been conceived as a pedestrian community with a strong sense of place that lives like a close-knit neighborhood village rather than a series of unrelated apartment buildings lined up in a row.

In addition to quality of life and opportunities for meaningful social interaction, sustainability is critical to Culdesac Tempe. Residents personal cars will be banned from being driven or parked on site, although the neighborhood will accommodate parking for visitors and car-based modes of transportation such as ridesharing.

Cars will be allowed in designated areas of Culdesac Tempe.

In typical developments, parking lots often dictate the design. Without this constraint, Culdesac says it will be able to offer three times the average amount of green space along with courtyards and community spaces.

Construction started this month, and the $140 million, 16-acre development is set to open in fall 2020 with 636 apartments and 24,000 square feet of restaurant and retail space. Culdesac Tempe will be centered around the mobility needs of residents with an on-site light rail station, a connective shuttle bus, dedicated rideshare pick-up zones, scooters with respective parking and car sharing for off-site transportation.

Founded in 2018 by former Opendoor founding team member Ryan Johnson and economic development specialist Jeff Berens, Culdesac has raised $10 million in venture capital funding to invest into its corporate operations led by Khosla Ventures, Initialized Capital, Zigg Capital, Bessemer Venture Partners and Y Combinator.

A core belief of Culdesac is the way we move defines the way we live. And the way we move is changing fast, with countless ways to get around today beyond private cars. The firm believes real estate innovation has failed to keep up with fast-paced changes in mobility, pointing out that transportation has evolved beyond car dependency, but real estate has not.

The communities we are living in were optimized for the peak car era, said Johnson, Culdesacs chief executive, explaining that Culdesac is building spaces for the post-car era. Starting next year, residents of Culdesac Tempe will be able to live life from their doorsteps rather than seeing it through their windshields.

Culdesac eyes assembling enough parcels to support a clearly defined neighborhood. The goal is to create a model for mixed-use urban redevelopment that integrates innovation, shared mobility infrastructure, a seamless technology layer, creativity, recreation and opportunities for meaningful social interaction and sustainability.

Because less land is needed to park vehicles, Culdesac Tempe will include a grocery store, coffee shop, co-working space, market hall and other retail amenities in addition to the rental apartments. To help bring this vision to life, the Culdesac team is working closely with architect Dan Parolek, who popularized the term missing middle housing, a concept for diverse housing options to create sustainable and walkable places.

Groundbreaking ceremony in November for Culdesac Tempe

The Tempe site was chosen for the first car-free neighborhood because of the citys thriving job market, growing population and land available directly on a light rail station. Additionally, Culdesac said local leadership has a reputation for being innovative, forward-thinking and action-oriented. Culdesac is evaluating locations for additional projects, including metros such as Dallas, Denver and Raleigh-Durham, North Carolina.

Because the power of transportation innovation is larger at scale, we're considering 50 to 100 acre sites for our next project, said Berens, Culdesacs cofounder and chief operating officer, adding that people are ready to leave their cars behind for the walkable and vibrant lifestyle that comes from living in a car-free neighborhood.

Culdesac Tempe will be situated along the Valley Metro Rail light-rail system.

Kris Baxter-Ging, public information officer for the City of Tempe, said Tempes transportation infrastructure plays an important role in its quality of life.

We are the only area city with border-to-border light rail that connects directly to terminals at Phoenix Sky Harbor International Airport, she said. We have free neighborhood buses that can be hailed almost anywhere on their routes. And we have rentable dockless scooters and bikes as well as Uber and Lyft pick-up stations.

Baxter-Ging added that Tempe has more than 200 miles of bike paths, including many that are not on busy streets. An upcoming addition to the Tempe transit landscape, a project called Tempe Streetcar, is two years from completion.

Tempe Mayor Mark Mitchell said the Culdesac Tempe project is consistent with the citys vision for meaningful development.

We are trying to help people be less reliant on cars to get around Tempe and even the greater Phoenix metropolitan area, he said. This project is perfect for our vision.

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Developer Breaks Ground On A Neighborhood In Tempe, Arizona, For PeopleAnd No Cars - Forbes

Verde at Cooley Station in Gilbert broke ground on Tuesday, Nov. 19 to kick off the first phase of construction for the 23-acre project at the southwest corner of Williams Field and Recker Roads.

Verde will be a gathering place for the community. In addition to offices, retail and restaurants, Verde will be loaded with unique wall graphics, large scale sculpture in public spaces, a childrens play area and a programmed performance venue hosting a myriad of events, said Norman Brody, a managing member of SB2-VB, LLC, the developer of the project. The design of Verde at Cooley Station incorporates new and innovative building materials, systems, technology and architectural expressions.

Citizens of Gilbert ages 8 to 80 can come together in Verdes public spaces to enhance their lives by participating in community events, or enjoying events at our performance venue or dining at an array of restaurants, shopping at a variety of stores or just hanging out, Brody said.

The first restaurants to commit to Verde, include OBON, a Japanese restaurant with its unique experience in Asian dining and casual atmosphere; along with the Valleys very own West Alley BBQ, which will bring its Tennessee-style open-pit, slow-cooked meats and live entertainment; and the tasty ice cream creations of Cookies & Cream.

Verde is located within the 650-acre Cooley Station master-planned community that provides single-family housing, multi-family residential options, commercial space and a transit station for a future commuter rail line which will speed East Valley commuters to Phoenix. Verde will be the centerpiece of Cooley Station encompassing almost 150,000 square feet of commercial space and 450 multi-family residential units.

At Verde, we have also sought to create within Cooley Station the first phase of an urban core for Gilbert where people can live and work as such in Verde, we are integrating two multi-family projects just a short walk to the commercial district, with more than 425 units and a 36,000 square foot Verde Medical Center being developed by Sina Companies, Palm Beach Gardens, FL, with leasing by The Plaza Companies, Phoenix, Brody said.

Town of Gilbert Mayor Jenn Daniels said she was thankful the Cooley family had chosen Gilbert as the location to develop Cooley Station and for making it a gem for all of Gilbert.

Restaurant, retail, office and health/wellness tenant announcements will be shared across the projects social media platforms. Work on the first phase of the development will carry on through the new-year with an expected open in late 2020.

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Verde at Cooley Station in Gilbert breaks ground - AZ Big Media

SOUTH AFRICA. The KwaZulu Cruise Terminal Consortium, in which MSC Cruises has a 70% stake, broke ground on the construction of a new cruise terminal in Durban this month in partnership with state-owned Transnet National Ports Authority.

Construction of Durbans new cruise terminal has just begun (shown here is an artists impression)

The 4,500sq m building will transform the port experience for cruise passengers with a contemporary feel, a retail offer, improved energy efficiency, as well as a flexible space for conferences and events. The first phase is expected to be operational by January 2021.

This multi-user terminal will make Durban an even more desirable destination for cruise ships from all over the world, said MSC Cruises South Africa Managing Director Ross Volk. It will substantially boost tourism numbers as well as help create local jobs and lead to local supplier development.

Tying in with the terminal development, MSC Cruises expects to deploy two ships in South Africa for next winters 2020-2021 cruise season. MSC Opera (Lirica Class) will homeport in Cape Town and MSC Musica (Musica Class) in Durban. This will mark the first time that two different classes of MSC Cruises ships will be deployed in South Africa simultaneously.

Volk commented: The deployment of two classes of ship to South Africa for the local 2020/2021 season will allow us to meet more fully the growth in demand we have experienced over the past few years. Together the ships will offer over 60 cruises next season serving alternate routes whose itineraries include stops in Mozambique and South Africa.

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Construction of new Durban cruise terminal will substantially boost tourism numbers - The Moodie Davitt Report - The Moodie Davitt Report

Phoenix Mills is one of Indias largest mall owners and operators and therefore, is a good proxy for the expected domestic consumption growth story, which is boosted by the burgeoning urban middle class. Analysts are getting attracted to this counter now because Phoenix was able to report decent numbers for the second quarter of 2019-20 despite the overall weakness in the consumption space. A 66% y-o-y jump in revenue from commercial portfolio helped Phoenix to achieve this.

With the completion of its mall construction getting nearer, Phoenix is expected to report better numbers in the coming quarters. As of now, Phoenix is constructing five retail properties in different cities including Lucknow, Pune, Bengaluru and Ahmedabad. The Lucknow mall has already reached the fit-out level and the same is being handed over to the tenants for interior work. This mall is expected to be fully operational by February 2020. Around 75% of the space in Lucknow has already been leased out and since the demand is high, the remaining portion is also expected to be leased out soon.

Construction progress of the remaining four retail assets are also satisfactory. These are expected to be fully operational between 2020-21 and 2022-23 in a phased manner. Phoenix also has exposure to office space and hotel space. It has around 2 million sqft office space ready and the another 1 million sqft office space is in progress. Phoenix has already spent Rs 230 crore in the first half and is expected to spend around Rs 600 crore in the second half of 2019-20. If one considers its development plans, the total capex in the coming financial years will be to the tune of Rs 2,000 crore. Since the net debt equity is now placed at a comfortable 1.08 times, these new capex plans will be funded using debt and equity.

Reasonable valuation, ie compared to other real estate players, is another factor that is attracting analysts to this counter. While retail and office rentals are showing stable growth now, the hotel space is facing some hiccups. That means, Phoenix will continue to report stable growth in coming years and the expected spurt in growth will come from the cyclical upturn in the hotels sector.

Analysts viewsBuy: 16

Selection MethodologyWe pick up the stock that has shown maximum increase in consensus analyst rating during the last one month. Consensus rating is arrived at by averaging all analyst recommendations after attributing weights to each of them (ie 5 for strong buy, 4 for buy, 3 for hold, 2 for sell and 1 for strong sell) and any improvement in consensus analyst rating indicates that the analysts are getting more bullish on the stock. To make sure that we pick only companies with decent analyst coverage, this search will be restricted to stocks with at least 10 analysts covering it.

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Stock pick of the week: Phoenix Mills is beating the odds, despite weakness in consumption space - Economic Times

TORONTO, Nov. 25, 2019 /CNW/ - Menkes Developments Ltd., in partnership with Healthcare of Ontario Pension Plan (HOOPP)and Sun Life Financial, is pleased to announce the new address of legendary comedy institution The Second City will be One York Street, its large-scale mixed-use complex at York and Harbour Streets. The iconic comedy company is set to occupy 28,700 square feet on the third floor of the retail podium and operate multiple comedy theatres for live performance, the Toronto branch of its world-leading improvisation-based arts school, and a games-driven bar and restaurant.

Connected to Toronto's comprehensive PATH network, the two million-square-foot complex was developed by Menkes and includes a 35-story Class AAA office tower, two 70- and 66-story condominium towers known as Harbour Plaza Residences, a four-story retail podium with 170,000 square feet of commercial retail space, and a four-level underground parking garage.

One York's central position in the South Core and its direct access to Toronto's PATH network have already made it an attractive destination for both Torontonians and visitors to the city. The addition of The Second City to complement One York Street's existing dining and retail offerings, along with its proximity to Union Station and the Scotiabank Arena, will further enhance the entertainment hub.

"We are proud to embark on this exciting partnership with Toronto's legendary comedy theatre," said Peter Menkes, President Commercial/Industrial. "The Second City will be the perfect addition to this mixed-use complex, adding entertainment to our exceptional list of retail tenants, and further solidifying One York Street's position as the ultimate, live, work, play environment."

"Since The Second City came to Toronto in 1973, this city has developed some of the finest names in comedy: Dan Aykroyd, Gilda Rader, Catherine O'Hara, Eugene Levy, Andrea Martin, Martin Short, Mike Myers, Colin Mochrie, Nia Vardalos...the list goes on. Our new home will allow us to continue the tradition of discovering new talent while affording us additional stages for diverse programming like She The People," said Andrew Alexander, CEO and Executive Producer of The Second City.

"The Second City is excited to break ground on three new state-of-the-art theatres, as well as provide increased classroom space for our ever-growing Second City Training Centre, which serves thousands of students of all ages every year," added D'Arcy Stuart, Chief Operating Officer of The Second City. "This is also a prime opportunity for us to add dynamic multi-use spaces to accommodate groups, meetings, celebrations, and events of all sizes. We are excited to be part of the Menkes vision for the South Core."

Set in the vibrant South Core district, the property is located in close proximity to some of the City's landmark entertainment venues, such as Scotiabank Arena, the Rogers Centre, Ripley's Aquarium of Canada and the CN Tower.

The Second City is expected to open in the fourth quarter of 2020.

About MenkesMenkes Developments Ltd. is an award-winning, fully integrated real estate company involved in the construction, ownership, and management of office, industrial, retail and residential properties. Founded in 1954, the company is one of the largest private developers in Canada, with a primary focus in the Greater Toronto Area. Menkes is known for its innovative, multi-disciplinary approach and particularly for its expertise in large-scale, mixed-use development. Past projects include the Empress Walk entertainment, shopping and residential complex in North York City Centre, and two landmark projects in Toronto's South Core district, 25 York (TELUS House) office tower and the two million square foot One York commercial retail complex. The company's latest project Sugar Wharf is a waterfront community on an 11.5-acre site in downtown Toronto, which will be anchored by a new two-acre park. For more information about Menkes, please visit menkes.comand follow us @MenkesLife.

About The Second CityThe Second City, a 100% Canadian-owned company, is the premier brand in improv-based sketch comedy. Dedicated to entertaining, inspiring, and transforming through courageous comedy, the company's resident stages in Toronto and Chicago, plus five Touring Companies and a booming Theatricals division, entertain an additional one million theatergoers a year around the globe, and alumni of The Second City include some of the most lauded names in comedy history. The Second City Training Centre, which includes the Harold Ramis Film School, is the largest school of improvisation on the planet, with locations in Toronto, Chicago, and Los Angeles. Second City Works, the B2B side of The Second City, focuses on hands-on learning, digital content, and consumer insights, while Second City Entertainment's foray into television and media produces new and classic content and programming, including two-time Emmy winner SCTV. For more information, please visit secondcity.com.

SOURCE Menkes Developments Ltd

For further information: Jamie Okorofsky, Menkes Developments, Jamie.okorofsky@menkes.com, 647-252-1952

Link:
Menkes welcomes The Second City to its new home at One York Street - Canada NewsWire

For anyone working within the commercial construction industry, figuring out the costs per square foot may appear somewhat elusive at first glance, even after conducting preliminary research. While there are no easy answers, compiling accurate data for the project including its location, the type of building youre looking to build, and the local economy all are vital factors to take into consideration when estimating commercial construction costs.

Keeping this information in mind, it is essential to understand the cost drivers for any commercial project and how building type, construction type, and location can all be huge variables thatwill drive your cost per square foot. These arealways a part of the initial programming discussions, and the architectwill play a crucial role in determining projected expenditures. In this article, well explore the different types of commercial construction costs based on the type of building, location, and other variables that affect a projects bottom line.

First and foremost, it should be noted that not all types of construction cost the same per square foot, and even more importantly, the cost of construction per square foot varies substantially with location throughout the United States. For example, in the instance of a single-story office building, location alone can represent as much as 70% of the cost driver, as the median range for this type of construction is between $160 and $170 per square foot. Not surprisingly, New York tops the charts for the most expensive city to build in for every type of structure.

On the other hand, convenience stores are generally less expensive to construct than other building types due to their more simplistic architectural nature. The median cost for this commercial building type is usually around $100 per square foot. However, with the new trends in fast-food becoming more of a boutique experience, the cost for a typical fast food restaurant is steadily on the rise. Expenses for kitchen equipment also drive the costs of this building type to a median of nearly $200 per square foot.

Additionally, climate also plays a big part when it comes to location-specific expenses for example, buildings in colder climates may need to handle large volumes of snow and therefore be engineered accordingly; the same logic would apply for structures that are built in areas prone to hurricanes.

With so many variables involved, price figures per square foot can vary radically in the instance of commercial steel buildings. While the interior and exterior finishes are the primary contributors to driving overall costs, local building regulations can also influence the cost of a steel commercial building. Before signing a contract for a prefabricated steel commercial building, it pays to check into local building requirements to ensure the building will satisfy building codes. Furthermore, most local jurisdictions require a building permit for the construction of a commercial steel building.

According to Statista.com, commercial property refers to property used for business purposes. A popular area for investors, commercial properties are often rented out to other individuals or companies, who then use the spaces to run their businesses. The U.S. commercial property sector is comprised of the following key segments: industrial, retail, office, lodging, and amusement. The value of private office construction starts in the United States amounted to 6.6 billion U.S. dollars in the first half of 2017.

The site also reports that the commercial construction industry in the U.S. has been steadily expanding since 2010. For instance, approximately 72.24 billion dollars worth of commercial buildings were constructed in the United States in 2016. The number of individuals employed within the industry has increased accordingly, and projected to continue through 2018.

Statistics have also shown that commercial rents are on the rise in all sectors: while average retail rent was projected to rise by 0.9% by the end of 2016, rental rates in the office real estate sector was set to increase by 1% in the fourth quarter of 2016. Most notably, vacancy rates in both the retail and industrial real estate sector have shown a declining trend, and were projected to amount to 11% and 6.3%, respectively, as of the third quarter of 2018.

Depending on the breadth and type of commercial construction project you are planning, there are a number of different ways to save and/or allocate your expenditures when pricing out materials and labor. Below, a general guideline to keep in mind when researching your options:

Based on the information covered in this article, it should come as no surprise that the cost of constructing new commercial spaces is changing in 2018. In fact, research indicates that it may be a good time to invest in commercial, industrial, and multifamily construction across the U.S. Below, some of the national and local industry factors that currently impact the cost of commercial construction in 2018:

Across the United States, the cost to insure non-combustible construction materials (e.g., concrete) is less costly than insuring combustible construction materials (such as wood and plastic). Insurance costs may also be higher in some regions of the country where environmental and geographic features can increase the risk of structural damage.

For example, in New Jersey, the cost to insure concrete is far cheaper than the cost to insure wood. Insurance premiums for commercial properties in Edgewater, New Jersey were estimated to cost over $52,000 to insure wood, compared to $22,120 to insure concrete. In commercial property construction, opting to construct with concrete instead of wood will lead to an average of 57.7% savings. Additionally, insurance rates can also be dependent on specific architectural factors, such as how a commercial propertys roof is constructed. Construction companies have different insurance pricing systems, so insurance prices fluctuate across the state. Therefore, its wise to compare contractors before you proceed with any commercial construction project.

It was projected that in 2018, fabricated steel would see a substantial drop in price. However, with President Trumps recent plans to place heavy tariffs on steel imports, this could impact the cost of fabricated steel dramatically. The US produces 5% of the worlds steel, one of the top five producers of steel in the world. China produces 49% of the worlds steel, followed by the European Union at 10% of global steel production.

Should the Presidents 25% tariff on steel imports be passed into law, the cost of steel in construction would see a considerable increase. While the U.S. produces a fair amount of steel, the U.S. construction industry still relies heavily upon imported steel. There would also be a 10% tariff on aluminum imports, another material that is fundamental to sustainable construction efforts. Whether or not the steel tariffs pass through legislation will determine how the cost of steel changes, both domestically and internationally.

According to reports as seen in Curbed.com, there is a shortage of skilled construction laborers across the United States. Even with tax reform and regulatory rollback increasing optimism many firms predict more business and new hires in 2018, according to a survey by the Associated General Contractors of America builders and developers are uncertain as to where they will find additional skilled labor.

With the U.S adding roughly 210,000 new construction jobs in 2017 according to the Bureau of Labor Statistics, and currently experiencing low unemployment, the industrys growth keeps it from getting ahead of rising demand for workers. Research has shown that part of this trend is due to the rise of younger generations pursuing white-collar careers over blue-collar careers. Explains Randy Strauss, owner of Strauss Construction in Amherst, Ohio, The number one issues is the cost and availability of labor. Generation Z, which reflects individuals under the age of 21, are increasingly attending higher education over vocational schools. Frank Shaw, an economist with Fannie Mae, says that the data shows hiring and wages are up for construction workers, but building is still slow overall, based on pre-recession numbers.

In fact, ever since the recession, more than 1.5 million residential construction workers have left the industry, and those in todays building trades have an average age of around 50, which in turn drives up the cost of labor. Since there are not many young professionals moving into a career as a construction laborer, the price of construction will continue to be more expensive than in years past. Therefore, the cost of employing skilled construction laborers will need to be a factor in your projects budget.

With todays ever-increasing popularity to comply with environmentally-friendly designs, modular construction options remain a popular choice for commercial construction. These green options consist of pre-fabricated pieces of a building, which are built off-site and consequently lead to minimal site disruption, as well as an efficient construction completion. The price of modular commercial construction can vary substantially, from costs ranging from $35 per square foot to as much as $100 or more per square foot.

On a national scale, modular construction costs average between $35,000 and $200,000. Research has shown that the cost of modular commercial construction across the country will be impacted by the labor shortage and cost of construction materials. However, since the site for construction is shorter, the expenditures for skilled laborers will be less costly than in other projects.

As the rise of e-commerce giants such as Amazon and Blue Apron increases, the demand for new industrial spaces across the country continues to grow. Because of the heavy demand, the cost to rent industrial spaces is extremely expensive, with some spaces costing as much as $88 per square foot. Although constructing a new space may seem costly at first glance, it will be a wise investment in the long run.

Due to the reliance upon more expensive materials (such as steel), a larger industrial space will cost more to construct at the outset; however, the cost per square foot will be more attractive to new clients. New industrial warehouse construction will, therefore, find tenants easily due to the increased demand for more space.

In summary, the cost of commercial construction will be heavily impacted by the fluctuating costs of building materials. The shortage of skilled construction laborers will also impact construction expenditures. However, according to statistics and current industry trends, the United States is poised to see growth in construction efforts throughout 2018 and beyond.

Link:
Commercial Construction Costs Per Square Foot 2018 | ProEst

TECH 24 CONSTRUCTION is the premiere commercial build-out contractor serving the Virginia, Maryland and Washington, D.C., areas, providing expert retail construction and remodeling services. We offer retailers ground up construction, complete build-outs, customization, and refresh services.

With more than 200 employees and 120-plus tradesmen covering projects in Maryland, Virginia and the D.C. metro area, TECH 24 CONSTRUCTION is ready to serve all of your retail store construction and remodeling needs.

TECH 24 CONSTRUCTION specializes in the new construction of retail stores. Our experience, expertise and attention to detail is what sets us apart from other commercial contractors. Weve providedretail store construction to businesseslike River Bend Country Club in Great Falls, VA; Revolution Cycles Inc.; Safeway; Le Pain Quotidian in Bethesda, MD; and many more.

We place a heavy emphasis on pre-construction planning, scheduling and logistical analysis because when it comes to retail construction, these are the areas that ensure a projects success. At TECH 24 CONSTRUCTION we always work closely with the owner, building management, your design team and our sub-contractors to make sure your project is delivered on time and on budget.

Today, retailers need to keep shoppers engaged, keep up with the newest trends in design, products and services, and keep profits up. Store design makes a huge first impression on shoppers.

The layout and feel of your store can be the difference between keeping and losing customers. At TECH 24 CONSTRUCTION we stay abreast of the newest retail renovation trends that can help keep customers in your store and buying your products.

Whether its in-store entertainment spaces, feature walls or retro hipster chic style, we do the work to create the exact look and feel youre seeking. With our attention to detail and master craftsmanship, we can update your retail establishments look, feel, layout and flow. We offer a full range of retail remodeling construction services from a refresher update to a gut remodel, TECH 24 CONSTRUCTION is ready to help.

If youre planning a retail construction project, give TECH 24 CONSTRUCTION a call at 1-800-820-7194. Our team of professionals will work with you to deliver the design you seek on time and on budget. If you have any questions at all, please feel free to use the contact form on this page or to visit us at 5256 Eisenhower Ave, Alexandria, VA 22304 in the Landmark neighborhood of Alexandria, VA.

Whether its a complete ground up project, a customization, refresh or complete remodel, you can count on our craftsmanship, attention to detail and experience to create the retail space you desire. TECH 24 CONSTRUCTIONis a retail contractor that hasbeen proudly serving retailers in Maryland, Virginia and the D.C. metro area since 1998.

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Retail Space Construction & Renovation in Washington D.C ...