The confidence level of chief executive officers has decreased in anticipating a possible coming recession, says a new industry survey. Published by the Conference Board, which has offices in New York, as well as in Europe and Asia, the Measure of CEO Confidence survey shows a decline of two whole points from the group’s summer survey. That drop, according to a press release issued by the Conference Board, reveals a lack of confidence not seen since 2009 during the depths of the Great Recession. Questioning nearly 140 chief executive offices from around the country, the survey showed a massive 98% anticipating a recession sometime between now and early 2024. In a statement, Dana Peterson, chief economist with Conference Board, noted that only 5% of respondents said that "business conditions were better today than they were six months ago.” That same low percentage applied to those who said they expected conditions to improve by next spring. But, continued Peterson, despite expectations of slower growth, tight labor market conditions and wage pressures, “hiring plans remained robust.” An equally bullish figure was seen in the number of chief executive officers, at 86%, who said they expect to either increase their capital budgets or keep them at current levels. Feelings regarding exactly what kind of recession the country may be facing remained decidedly mixed among the chief executive officers. Most respondents said they thought the U.S. recession would be “short and shallow.” But at the same time upwards of 70% thought it was likely that Europe will see a “deep recession with serious global spillovers.” The confidence index for the chief executive officers was mostly on the upside and above 50 between the end of the Great Recession and the early 2021 onset of Covid-19. The numbers swiftly dropped to the upper 30s during the spring months of 2021, only to jump back up again, when the nation was experiencing a post-pandemic economic boom in late 2021 and early this year. By Garry Boulard
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One of the classic motels in the central Colorado vacation resort city of Manitou Springs, is being listed for sale for $3 million. The Park Row Lodge is located at 54 Manitou Avenue on the east side of the city and was built in 1948. With 21 motel rooms, the Park Row Lodge has long been a favorite for visitors who come to Manitou Springs for its various natural mineral springs, clean mountain air, and hiking paths. Measuring around 10,500 square feet, the motel, defined as a Class C building, sits on a 1.3-acre site, and includes two cottages. The Park Row Lodge, according to author Deborah Harrison in her 2012 book Manitou Springs, is “representative of the roadside architecture that dominates eastern Manitou Springs.” The author also made note of the motel’s distinctly post-World War neon sign, which she called a “fine reminder of a bygone era.” The property is being listed by Re/Max Commercial of Colorado Springs. By Garry Boulard A series of park upgrades and new park construction are in line for El Paso if city voters two weeks from now approve a $20.8 million bond proposal. That question is part of an overall package of three bonds totaling $272.5 million that will also fund street and sidewalk projects throughout El Paso and implement a climate control initiative. The parks proposal, officially Proposition B, will see the building of up to 18 shade structures in El Paso’s parks. To date, some 77 shade structures have been erected citywide, with the goal of at least one shade structure in all eight of El Paso’s council districts. Uniquely, Proposition B will also fund the building of what are known as accessible playgrounds, allowing for children both with and without disabilities to play together. Accessible parks include such features as flat surfaces better designed for wheelchair use, wide paths, and accessible bathrooms. In recent years such parks have increasingly been built in cities across the country, as well as within the U.S. National Park System. By Garry Boulard Construction employment is significantly up across the country, with gains over the last twelve months in 47 states. So says a new survey just published by the Associated General Contractors of America showing that firms of all sizes have increased their payrolls in recent months, including both open shop as well as union craft labor companies. While the new survey, done in a partnership with the company Autodesk, clearly reveals boom times for construction employment, it also shows a growing industry need for yet more workers. In a statement, Ken Simonson, chief economist with the AGC, said, “Construction workforce shortages are severe and having a significant impact on construction firms of all types, all sizes, and all labor arrangements.” Simonson added that the ongoing shortages are “compounding the challenge firms are having with supply chain disruptions that are inflating the cost of construction materials and making delivery schedules and product availability uncertain.” The year-over-year job gains seemed particularly robust in the West, with Arizona seeing an increase of 4,600 workers since last fall, while Colorado’s numbers were up by 7,400. New Mexico recorded an increase of 6,000 workers, with Texas, reflecting a significantly larger population base, up by 43,200. Nevada and Utah, meanwhile, saw gains of 5,500 and 11,600 respectively. While the ever-present need for more construction workers is great, the situation will probably worsen due to a slow Baby Boom exit from the nation’s workforce, noted Allison Scott. In charge of customer experience and industry advocacy at Autodesk, Scott predicts the current shortly “is only going to intensify as more workers retire.” But in a positive note, Scott added that many of the nation’s construction firms have been taking a “proactive approach to preparing future workers for careers in construction.” Continued Scott: “The renewed investment in career development and training, as well as a focus on digital skills, demonstrates that the industry is committed to taking action to build the next generation of the workforce.” By Garry Boulard A unique project in Aurora, Colorado is set to see the development of a wide array of industrial and office space across a swath of 6,500 acres. What is being called Port Colorado is being advertised as a “rail-served industrial and commercial park” just to the southeast of the always-growing Denver International Airport. In the talking stage for several years, Port Colorado, adjacent to the Interstate 70 Corridor, is zoned for both light and heavy industrial development. According to a new website advertising the park, Port Colorado is envisioned as a “global enterprise center for commerce, innovation, and culture,” which may eventually include the creation of a 100-megawatt solar farm stretched over a 700-acre site. The solar farm is being done in conjunction with both the City of Aurora as well as the Xcel Energy company and is part of a larger effort not only promoting renewable energy sources throughout the park, but also emphasizing waste-to-feed processes and cogeneration offerings. In an interview with the Denver Business Journal, Wendy Mitchell, chief executive office of the Aurora Economic Development Council, described Port Colorado as “the next big thing for Aurora and for all of Colorado.” The Port Colorado project is only the latest business park project for Aurora, located around 15 miles to the east of Denver. With a population that has jumped from 158,000 in the 1980s to nearly 400,000 today, Aurora is the home to around a dozen business parks ranging in size from around 100 acres to more than 1,600 acres. By Garry Boulard Opposition to a $17 million project in Vail, Colorado that would see the construction of affordable housing for the employees of the Vail Resorts company has taken a new turn. For months the ski resorts company has said that it wants to build up to at least 165 residential units in one of the most expensive markets in Colorado, where the average rent for a one-bedroom apartment is now well over the $1,800 mark. A host of city officials have previously expressed opposition to the project, set to go up on a 5-acre site off the Interstate 70 Frontage Road, noting, among other things, that it might have a destructive impact on the area’s bighorn sheep population. Now the city has announced plans to invoke its eminent domain powers for the site in question, filing a petition in the Eagle County District Court to that effect. The move, if successful, would preserve the 5 acres as open space. What has been popularly called the Booth Heights project has been the subject of any number of often heated planning and public input meetings, with the City of Vail unsuccessfully attempting to purchase the land for $12 million earlier this month. City officials have said that while they recognize the need to build new affordable housing in Vail, the Frontage Road project is the wrong project in the wrong place. Vail Resorts has previously maintained that it is committed to paying up to $100,000 for habitat restoration and will surround the project with barriers designed to keep the bighorn sheep and other wildlife separated from the new development. It is not known when the Eagle County District court will make a ruling regarding the eminent domain request. By Garry Boulard Diesel prices nationally are continuing to rise, according to a new report issued by the federal Energy Information Administration. That report indicates that the Producer Price Index shows diesel prices in September climbing to $4.99 per gallon. But the real change comes when compared with where things were exactly a year ago, when the price stood at $1.66 per gallon. The price increase was seen across the country, with the East reporting prices just below $4.80 per gallon, and the Middle West just over that figure. The highest prices were recorded in the Rocky Mountain states at slightly less than $4.90 per gallon, and the West coast, coming in at $5.50 per gallon. The price of diesel has been steadily increasing throughout this year but took its most significant jump in March when it went from $4.00 per gallon to $5.10 and has generally stayed near the $5 range ever since. The price rise is accompanied by a decline in product, with diesel stockpiles now at their lowest point in nearly 15 years. Notes the publication The Drive: “Part of the reason for the diesel supply shortage is maintenance season, but the bigger issue is Russia’s war in Ukraine, which has hurt global fuel supplies.” According to a recent survey issued by the American Transportation Research Institute, fuel prices are now the number one truck driver concern, supplanting earlier worries centering on a shortage of drivers. By Garry Boulard A former computer superstore in southern Tempe may be repurposed as a new Costco Wholesale Corporation retail site. Located on a less than two-acre site at 2300 W. Baseline Road, the property was the home of the massive Fry’s Electronics, which ceased all its operations in the city last spring. The San Jose, California-based Fry’s, with stores in nine states, rather abruptly announced it was closing the Tempe store as well as all its other locations due in part to the Covid 19 outbreak and subsequent national economic shutdown. Costco has now submitted plans to the City of Tempe for the site, which include updating the 149,000 square foot structure, which was originally built in 1994. Costco’s new Tempe presence will be added to a footprint in Arizona that already includes some two dozen retail outlets. Those Costco locations range in size from 80,000 square feet to 230,000 square feet, with the average site coming in at 146,000 square feet. Launched in the fall of 1983, the company, specializing in everything from groceries to clothes to electronics, has more than 830 locations worldwide. Last year it saw revenues of nearly $226 billion. An exact timetable for when the Baseline Road building will be repurposed has not been announced. But published reports have indicated that Costco would like to be operating at the new site by the end of 2023. By Garry Boulard An auction is scheduled for November 2 for a two-story solid cement building that was formerly a bank in Farmington, New Mexico. Located one mile to the east of downtown Farmington at the corner of E. Broadway Avenue and South Orchard Avenue, the more than 46,400 square foot structure was built in 1979 and includes office space, vaults, restrooms, and both a break room and storage room. Additional features: a mechanical room and small maintenance space. The structure formerly served as a location for the First National Bank of Farmington, before that operation merged with the Wells Fargo Bank in early 2000. Last summer, Wells Fargo closed its offices in the building. Listed with the real estate auction firm Williams & Williams with a minimum bid of $400,000, the structure is located in a neighborhood populated with smaller retail shops and offices. By Garry Boulard “We’re going to try and convert commercial office space into housing,” Albuquerque Mayor Tim Keller declared, as he announced a multi-level approach to creating new housing in the city, adding: “We’re proposing a $5 million fund to do that.” The idea may strike many as unconventional, but increasingly across the country, empty office space is being used for housing, with repurposing particularly seen in Atlanta, Chicago, Cleveland, and Los Angeles. Late last year, Muriel Bowser, the mayor of Washington, D.C., said she was reaching out to the owners of vacant office buildings in order to find out “what they would need to consider transforming office structures into residences.” City officials in Washington have said such adaptive re-use could also bring with it the additional benefit of having more people in downtown areas, particularly in evening hours when many of those areas are largely empty. The San Francisco Chronicle, recently noting that city’s urban core had been gutted by hundreds of office workers now working remotely, has argued that an influx of people living in downtown office buildings could “foster a walkable community with a more sustainable economic ecosystem of new grocery stores, pharmacies, and other retail stores.” According to the site RentCafe, a combined 6,000 apartment units nationally were created as a result of either hotel or factory space conversions in 2021. But the largest number, at roughly 7,400 apartment units, were created as a result of office project conversions, a number that has grown by double-digits in the last decade. But such transformations are not without challenges: A report published last year by the National Association of Realtors noted that office-to-housing repurposing projects may require zoning variances and regulation changes. The report also pointed out that the shape, size, and location of a building can drastically impact conversion project costs. “Wedge-shaped or cube buildings lend themselves more easily to conversion than rectangular buildings where much office space is far from exterior walls with no natural light.” The report, Office to Housing Conversions, added that in such cases repurposing projects “may require modifying the basic building structure of the building roof to allow light in the inner space.” By Garry Boulard |
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