Wednesday, April 25, 2012

Gaston Commercial Real Estate - What WIllis Would Talk About

Has been sometime since I did a LISTING  blog. So rather than take a lot of space here just click and go.

Friday, April 13, 2012

Little If Any Meaningful New Commercial Construction Gaston County NC

Article From Co-Star with all credit given. Links Are For Localized Information.

Balancing Act: Lack of New Commercial Space Overcomes Softening Demand
By Mark Heschmeyer
April 11, 2012
      Commercial real estate demand softened during the first quarter of 2012, but not enough to throw absorption off its pace of eight straight quarters of gains. The numbers were aided by little if any meaningful new construction coming online, resulting in declining vacancy rates.

Although rising energy prices and fiscal debt issues for both domestic and foreign governments remain as clouds on the horizon, the U.S. commercial real estate market remained firmly in recovery mode, led by the
office and warehousesectors, according to Walter Page, director of research for CoStar's Property and Portfolio Research division.
CoStar's national market research for the first quarter of 2012 showed that, while net absorption slowed slightly compared to the last half of 2011, rent trends generally improved from prior quarters, with the supply-demand balance supported by a lack of new space being added to the market.

"We may not be out of the woods just yet, but the data we've compiled for the first quarter certainly demonstrates an ongoing recovery and points towards future growth," Page said. "While the retail recovery was less pronounced than in the
office and warehouse sectors, we're witnessing positive net absorption across the board."

Wednesday, April 11, 2012

How Commercial Construction Is Like A Trip To Vegas

Construction is a seemingly straight forward business; I bring together men, material and equipment to create what the Project requires. For that management I earn a small fee.Until people get involved.

A Client sometimes with or without an Architect defines the Project Scope of needs and wishes. I  estimate the Costs required to achieve the Client’s desired end. Along the way Cost clashes with dreams and expectations. Hopefully a new Value based reality is created.

Now assuming the Client can get financing required for the revised Project I finalize the Estimate of Cost hoping that I have included all the variables and likely contingencies of actual construction. Knowing there is little I, the General Contractor, can do if we have 30 more rain days than forecast or a supplier or sub goes broke or makes a costly error along the way. Murphy says "Things just happen."

Further assuming I am selected for the Project I then face the job buyout risk associated with the sometimes year delay between the last Estimate and Notice to Proceed after Financing, Zoning and Plan approvals.  Increases in material cost can be weekly. Add issues like changing code requirements, increases in rental cost for equipment, and availability and cost of qualified field staff to man the project and yes it is a gamble but at least I save the costs of traveling to Vegas.