A new survey shows that despite the ongoing need for more construction workers, the industry’s payroll has increased by around 292,000 jobs in the last year. Conducted by the Washington-based Associated Builders and Contractors, the survey charts increases in all industry segments, with nonresidential building seeing a gain of 27,000 jobs since September of 2021. Nonresidential specialty and trade contractors saw a jump of nearly 115,000 workers in that same period of time, with residential specialty trade jobs up by 77,500. More modest gains were posted in the heavy and civil engineering segments, with an increase of 39,800 jobs in the last year. Residential building, meanwhile, was up by 33,000 jobs. The numbers were also up in most segments when looked at a month-over-month basis, although in that category the heavy and civil engineer segment saw a slight decline of 500 jobs, followed by a drop of 100 jobs in residential building. In a statement, Anirban Basu, American Builders and Contractors chief economist, noted that “despite elevated compensation costs, employers continue to hire aggressively.” Basu additionally noted that even in the face of a possible recession, “most contractors remain upbeat regarding near-term prospects.” Observing that contractors in general are anticipating increased sales in the coming months, with a rise in employment and profit margins, Basu remarked that the primary challenge facing the industry today is “not insufficient demand for construction services, but rather a lack of access to skilled craft professionals.” By Garry Boulard
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One of the classic buildings in a southern Arizona city known for classic buildings is on the market for just under $1 million. The three-story brick Palace Livery building is located at 69 Main Street, on a throughfare dominated by buildings dating to the 19th century. Built in 1909, the structure originally served as horse boarding stable that also sold horses, as well as carriages and funeral hearses. An ad in 1909 for the business in the Bisbee Daily Review promoted a line of “stylish, up-to-date” rigs and “spick and span horses which can make good time.” The 10,000 square foot structure, which in recent decades has been used for retail purposes, still features a massive horse elevator left over from its days as a livery. Built with a neoclassical design, the building also features a tripart façade framed by brick pilasters on stone footers, and three bays of windows. Additional elements include a cornice with fan molding, plaster medallions, and arched windows on the third floor. Like most structures in the defined Bisbee Historical District, the structure has been preserved intact and is currently the home to an antique and art store called Acacia Collectibles. Listed with the commercial realtor Zoned Properties, Incorporated, which is based in Scottsdale, the structure is categorized as a Class C building. By Garry Boulard A modern 18-story office building in downtown El Paso may soon change hands, with the current owner maintaining space in the structure through a lease-back arrangement. Located at 100 N. Stanton Street, the structure, with more than 379,000 square feet of rentable space, is currently the corporate headquarters for the public utility company El Paso Electric. Completed in 1983, what is known as the 100 Stanton Tower includes loading dock space and covered parking, among other features. Listed as a Class A building, the structure also includes a modern-designed outdoor sitting space. The building was originally owned by the El Paso Natural Gas Company before being sold for $40 million to the California Public Employees Retirement System. El Paso Electric, which began leasing offices on five floors of the building in the fall of 1996, purchased the structure outright in 2008. Listed as the 5th tallest high-rise in the city, the structure was originally called the Kayser Building. By Garry Boulard Up to a dozen states have now invested funds to build wildlife migration corridors to decrease the incidence of cars and trucks colliding with moose, deer, and elk, among other animals. According to the National Conference of State Legislatures, anywhere from 1 to 2 million motorists collide with wildlife every year causing up to 200 human deaths. The federal Department of Transportation, meanwhile, has estimated that at least 1 million animals die as a result of those same collisions. Most states tackling the issue are in the West, with lawmakers in Colorado this year giving their approval to the allocation of some $5 million for the building of wildlife crossings. Earlier this year, New Mexico completed a wildlife corridor action plan, with legislators allocating $2 million. A New Mexico lawmaker, Senator Mimi Stewart, has told the Albuquerque Journal that she’d like to secure up to $50 million in the upcoming 2023 legislative session to begin the actual construction of those crossings. Lawmakers in Wyoming have similarly set aside in excess of $10 million to build wildlife crossings, with Governor Mark Gordon putting his signature on an executive order establishing a process for the designation of such corridors. The larger effort is additionally being spurred by up to $350 million via the Infrastructure Investment and Jobs Act to build new wildlife crossings. Notes Governing magazine: “Now it’s up to agencies such as the Federal Highway Administration to efficiently implement these programs so that tribes, states, and other stakeholders can apply for these critical grants.” It is expected that at least $60 million will be made available between now and next year through the FHA program. Local governments, metropolitan planning organizations, and regional transportation authorities may also be eligible for grant funding under the program. Costs to build the corridors range widely, with underpasses usually tunneled in an area of hills, and 8-foot-tall fences on both sides of the corridor running a length of three miles to steer the wildlife into the crossings. By Garry Boulard Plans are now underway for the construction of a new complex with 114 residential units in the Old Town section of Fort Collins. The project jointly belongs to the Colmena Group, which is based in Salt Lake City, Utah, and the Fort Collins-based Tribe Development. As anticipated, the 7-story project, to be built in the 200 block of Cherry Street next to the city’s historic trolly barn, will go up in an area populated with newer multi-floor apartment complexes. A conceptual plan for the project has now been filed with the City of Fort Collins’ planning department. The Colmena Group is both a real estate development and investment company that has developed more than 11,000 apartment units since its founding in 2008. Tribe Development bills itself as a comprehensive real estate and consulting firm, with projects throughout Colorado. Rents in Fort Collins have been significantly on the upside in recent months. According to a site maintained by the Norada Real Estates Investments company, the city has seen a 22% increase in rents since 2020, with the average one-bedroom going for $1,340. By Garry Boulard The property and site of one of the most popular nurseries in New Mexico is being listed for sale for $15 million. Headquartered at 715 Saint Michaels Drive, the Payne’s Nursery and Greenhouses has been an industry mainstay since 1952, providing customers with a wide variety of plants, bushes, and trees. The listing includes three properties: Payne’s North, at 304 Camino Alire, which features a main building, greenhouse, and annex, among other structures; and Payne’s South, at 715 St. Michaels Drive in mid-town Santa Fe, with a large retail store, storage room, and three greenhouses. The third property is officially called Payne’s Organic Soil Yard, on the south side of Santa Fe at 1620 Agua Fria, a site that includes a main building, storage facility, and well. The total land area for the three properties comes in at just under 9.2 acres, and is being listed for sale by the owner, Lynn Payne. By Garry Boulard A combination of concerns about an upcoming recession, along with ongoing supply chain issues, has pushed back housing projects across the country, according to a new survey. The National Multifamily Housing Council is reporting that upwards of 90% of multifamily developers and owners say they have experienced project delays heading into this fall, with the number one reason for those delays being the economic feasibility of the project. Equally strong numbers were seen in the 78% of respondents who said they have experienced delays in permitting. Around 41% of respondents said the project delays have been due to “economic uncertainty,” while another 53% pointed to “materials sourcing and delivery” as a major impediment. In a narrative that has challenged home builders at least since the Covid 19 outbreak, 76% of respondents reported price increases with their individual projects. Those price increases varied, depending upon the material: respondents said electrical components were up by around 10%, with exterior roofing and finishes seeing a 6% jump. Appliances and insulation costs were up by 5%. In a statement, Doug Bibby, president of the National Multifamily Housing Council, remarked: “The nation is facing extraordinary housing affordability in the wake of the pandemic.” Bibby added that “lawmakers at all levels of government should look at every policy option available to them to reform antiquated zoning, streamline the development process and incentivize the building of new housing of all types and at all prices points.” By Garry Boulard Plans are proceeding, despite some resistance, for the construction of an amphitheater in Colorado Springs that could, upon completion, seat up to 8,000 people. The company Notes Live, which is also based in Colorado Springs and specializes in entertainment and hospitality offerings, wants to build the Sunset Amphitheater on the north side of the city. The project will go up not far from the entertainment venue Boot Barn Hall at Bourbon Brothers, which is also owned by Notes Live, and is expected to cost around $40 million to build. According to the company’s website, the Sunset Amphitheater will be “the most luxurious and hospitality-focused music venue in the country,” situated so as to offer views of the sun setting over Pikes Peak. To be built on a nearly 7-acre currently undeveloped site, the stadium will offer concerts and others shows throughout the year and will include parking space for up to 800 vehicles. Although at first blush those spaces would appear to be not numerous enough to accommodate all of the anticipated concertgoers, it is thought that a large percentage of those fans will get to the site through the use of ride share apps. According to city documents, additional amenities will include fire pit suites and both restaurant and bar space. Inspiration behind the project is businessman J.W. Roth, the former owner of Roth Premium Foods. Area residents have raised objections to the project, citing concerns about noise and traffic. Those concerns have been discussed in at least one public input meeting, with Live Notes saying that the project is currently being reviewed by traffic and parking experts. The input of those experts is expected to be reflected in an updated application to the city for the project. If all goes well, it is expected that work will begin on the amphitheater later this year or early next year, with a possible completion date of summer 2023. By Garry Boulard Relying on the kindness of voters, a growing city situated at the border of New Mexico and Texas may soon see the construction of a new regional recreation center. Sunland Park, which also lines the border with the Mexican state of Chihuahua, is seeking funding not only for the center project, but also an effort to upgrade its existing Sunland Park Community Library, located at 1000 McNutt Road. That funding will come out of a proposed $12 million general obligation bond to be decided by voters in the coming November election and may also be used to build a second library for a city whose population has jumped from just over 8,000 in the 1990s to more than 17,000 today. As proposed, the bond, broken down in three $4 million sections, will also be used to upgrade the city’s existing park facilities. A separate bond question, also with a dollar value of $4 million, may be used for the construction of a proposed new public safety complex; while the final $4 million allotment will go for roadway construction and upgrading, as well as wastewater infrastructure. By Garry Boulard Despite challenges from a weakening economy, and the lingering lifestyle impact of the Covid-19 pandemic, new hotel construction projects as well as renovations are very much on the upside. That’s according to a new report issued by industry number-cruncher Lodging Econometrics, showing that nearing mid-summer there were up to 430 new hotel construction projects underway nationally, representing a total of just over 47,000 rooms. That number is significantly up from the same point in time in 2021, when new hotel projects stood at 202, for a total of 25,600 rooms. The Lodging Econometrics survey also shows a decided increase in hotel projects that are in the planning stage, up significantly with 2,246 projects representing just under 258,200 rooms, compared to around 1,700 by mid-summer in 2021. Hilton Worldwide leads the global construction pipeline with just under 2,600 projects and nearly 380,000 rooms; followed by Marriott International at 2,533 projects and around 421,6700 rooms. Next up is IHG Hotels & Resorts, with 1,687 projects and just over 247,300 rooms. The Lodging Econometrics report dovetails another industry survey, this one conducted by the CoStar Group, a commercial real estate analytics company, revealing particularly strong construction pipeline activity is what are described as “smaller hotel markets.” This report, done with data benchmarking company STR, shows strong development numbers in such Western cities as Phoenix and Salt Lake City. At the same time, the South is turning in a particularly robust performance, with large projects noted in Florida, North Carolina, and Tennessee. According to a CoStar press release, this “activity in the South shows that developers want to take advantage of the rapid performance recovery during 2021 in the Sun Belt, which will likely fuel further development.” By Garry Boulard |
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