![]() Despite continued supply chain issues, steel imports into the U.S. were up by nearly 45% late last year over late 2020, according to a new report issued by the American Iron and Steel Institute. The report notes that as of the end of November, total steel imports were at 29.6 million net tons. The finished steel import market share, meanwhile, showed itself to be 22% higher than where things stood between January and November of 2020. A breakdown of specific products show heavy structural shapes with a 64% increase; sheet metal up by 33%; and cold rolled sheets up by 32%. Smaller gains were recorded in hot rolled bars, with a 29% increase; and tin plate products, up by 10%. U.S. slab, or semi-finished steel product imports, meanwhile, saw a massive increase of just under 264% from this past November compared with November of 2020. In a press release issued by the AISI, it was noted that the largest volumes of finished steel imports, at 232,000 tons, came from South Korea; with imports from Vietnam making up 180,000 tons; and Japan at 154,000 tons. The South Korean imports, notes the release, were “up 42%, vs. the same period in 2020,” with Japan seeing a 38% jump; and Turkey a strong 71% increase. Some analysts are predicting increased steel imports this year based not only on simple market dynamics, but also due to the passage of the Infrastructure Investment and Jobs Act late last year. The publication S&P Global Market Intelligence is reporting that “transformer builders are ordering more supplies” of steel, noting that the legislation makes available around $65 billion for the development of the nation’s power grid. Additional steel will be needed for the building out of a national electric vehicle charging network, with up to $7.5 billion in federal funds now available for such projects. By Garry Boulard
0 Comments
![]() Members of the El Paso City Council may take up a proposal next week calling for the city to protect several buildings in the historic Duranguito neighborhood. Those structures, several of which were partially demolished several years ago, have been left vulnerable to the elements, prompting some activists to ask that they be secured from winter weather as well as possible fire damage. What the council will decide is just the latest ripple in a struggle that has been going on now for nearly 6 years. In the fall of 2016, the City of El Paso announced that it wanted to demolish the more than 100-year-old Duranguito neighborhood in order to make way for the construction of a new multi-purpose arena. That $180 million facility, officially called the Multipurpose Cultural and Performing Arts Center, was to be paid for out of Quality of Life Bonds approved by city voters in 2012. It has since been estimated that because of the delays in getting the project underway due to the various legal challenges, the price tag is now probably in excess of $250 million. Some city officials have suggested that while work on the project obviously cannot begin until all of the legal issues have been resolved, that prohibition may also apply to doing anything to protect the Duranguito structures in their current condition. By Garry Boulard ![]() Work may begin later in the spring on the building of a 13-story apartment complex that will go up in the 1100 block of Delaware Street in Denver’s historic Golden Triangle neighborhood. The Denver-based Summit Capital Venture Group has announced plans to build a structure that will house 250 units and will also include roughly 2,000 square feet of retail space on the ground floor. What is being called the Golden Triangle Apartments, to be designed by the architectural firm of Studio PBA of Denver, is expected to cost just over $90 million to build. Additional planned features: an 850 square-foot sky lounge that will additionally include co-working space, and both a swimming pool and fitness center measuring 2,000 square feet. Summit Capital, which specializes in the development of multi-family projects, purchased the Delaware Street property last year for $5.4 million. The site, in a neighborhood populated with multi-story residential structures, has for decades been the home to a series of one-story brick apartment houses, which will be demolished to make way for the new project. Denver’s Golden Triangle neighborhood is one of the oldest neighborhoods in the city, with some residential structures dating to the late 19th century. It is also one of the most in-demand locations for apartment living, with the average one-bedroom unit currently going for $1,800 a month—a 10% increase over 2020. By Garry Boulard ![]() Private construction spending saw a marginal increase nationally towards the end of last year, according to a new report just issued by the U.S. Census Bureau. Both private residential and nonresidential spending was up as of late November, with overall spending between January and November up just under 8% over the same time period in 2020, indicating a post-pandemic year recovery. One of the biggest gains was posted in single-family spending, seeing a significant 34% gain over 2020, with multi-family spending up 16%. According to a press release issued by the Census Bureau, total construction spending for the first 11 months of 2021 equaled $1.4 billion, or “7.9% above the $1.3 billion for the same period in 2020.” In a different category, owner-occupied improvement spending climbed some 13%. The latest Census Bureau report also revealed a 0.5% decline in private nonresidential spending, with oil and gas field structures, as well as pipelines, off by 4.3% over 2020. Indicating the depressed condition of the larger industry in general, spending on lodging construction projects saw the greatest segment decrease with a big 32% decline over 2020. But in a tale of two industries, the building of warehouses, led by online retailers constantly looking for more storage space, saw a 15% year-to-year increase as of late 2021. By Garry Boulard ![]() An apartment complex advertised as being “located in the epicenter of Santa Fe activity,” is being listed for sale for $3.2 million. The complex in southwest Santa Fe is made up of just under two dozen units in two, two-story buildings comprising 10,400 square feet. With its address at 3226 Rufina Street, the complex was built in 1984 and saw renovations completed nearly 4 years ago. Listed by New Mexico Apartment Advisors, Incorporated of Santa Fe, which specializes in apartment investment properties, the complex is additionally located in a defined Opportunity Zone. The “epicenter” refers to the complex’s proximity to the immersive art entertainment venue Meow Wolf located several blocks away, as well as the proximity of a nearby Wal-Mart and Home Depot outlet. By Garry Boulard ![]() Rebuilding in the wake of the worst fire in Colorado history may not be underway for months to come, say officials in Colorado. What is being called the Marshall Fire is thought to have destroyed nearly 1,100 structures, both residential and commercial, while significantly damaging around 150 more. The grass fire broke out on the morning of December 30, helped along by wind gusts in the range of 115 miles per hour, prompting the evacuation of the town of Superior and the nearby cities of Broomfield and Louisville. After a full day in which the fire spread to some 6,200 acres, the fire was finally most effectively doused by a heavy snowfall. Authorities estimate that damage from the fire is well over the $500 million mark, with many homeowners getting some assistance and relief through the Federal Emergency Management Agency. In a town hall meeting, Kevin Klein, Colorado Director of Homeland Security and Emergency Management, noted that there will be a path to rebuilding, but added: “There are different phases. There is short term, intermediate, and long-term recovery. The long-term recovery is going to take years.” In an interview with the Associated Press, Kelly Moye, spokesperson for the Colorado Association of Realtors, said the rebuilding is “going to take forever.” Moye noted that such efforts are additionally hampered by the continuing lack of building supplies due to the national supply chain crunch. “It’s a huge chunk of the population who all need the same thing,” she added. “And they all need it right now.” Experts say the rebuilding effort will also be hampered by the need to first remove toxic debris from the burn sites. By Garry Boulard ![]() New condominium projects, once a mainstay of the nation’s homebuilding market, have largely remained on the downside for most of last year, according to a new study released by the Washington-based Urban Institute. The report, Housing Finance at a Glance, notes that such properties have been generally decreasing for the last decade, and adds that the decline may be due to “construction defect litigation and related insurance coverage issues.” In some states, that defect litigation has been pervasive enough to lead to the passing of legislation requiring greater proof of structural defects before a lawsuit against a builder can proceed. Colorado passed such legislation in 2017. The overall decline in condominium sales represents a loss for the first-time homebuyer market. In fact, says the Urban Institute report, “loans for first-time buyers of condominiums and cooperatives” have traditionally been “more likely to go to one-borrower applications, a rough proxy for single-person households.” Adds the report: “Condominiums are an essential purchasing target of first-time homebuyers largely because they are typically considered more affordable than single-family homes in many jurisdictions.” At the same time, the “share of one-person households has climbed in recent decades,” says the report, noting that recent figures put this segment at around 28% of the total national homebuying market. While condominium construction has proven sluggish, there are some bright spots: Forbes reported that the sale of luxury condominiums in Manhattan saw an increase in 2021, reaching levels not seen in 13 years. Despite the litigation and insurance coverage issues, the Urban Institute report suggests that a future increase in condominium construction could prove lucrative due entirely to one factor: demographics. Noting the nation’s declining marriage and fertility rates, along with the “increasing age of first marriages,” a renewed emphasis on building condominiums “could be the key to helping younger households achieve and benefit from homeownership.” By Garry Boulard ![]() Construction is expected to begin later this spring on a water pipeline that will feed the Intel Corporation’s manufacturing facility in Rio Rancho. The project is expected to cost around $32 million to build and will run from the northwest side of Albuquerque to the Rio Rancho site, which is located at 1600 Rio Rancho Boulevard SE. The Santa Clara, California-based semiconductor chip manufacturer has entered into an agreement with the Albuquerque Bernalillo County Water Utility Authority to build the modern pipeline. Other aspects of the project will see the installation of new casings, pumps, and well motors. In a statement, Linda Qian, spokesperson for Intel New Mexico, said water coming from the pipeline to the Rio Rancho site will undergo a process designed to make it “ultrapure.” Such water, Qian said, will be used to “clean the surface of the silicon wafer.” Last spring, Intel announced that it was undertaking a $3.5 billion retrofit of its Rio Rancho facilities in order to increase the plant’s output. That retrofit has been specifically designed to support the manufacture of a new kind of microchip technology. At the time of that announcement, Pat Gelsinger, Intel’s chief executive officer, told the television program 60 Minutes that the company has “come up with some cool innovations that are called 3D packaging.” Gelsinger explained that the new process means that “we don’t have just one chip that we package and deliver, but we stack chips on top of each other.” Founded in 1968, Intel opened its Rio Rancho facilities in 1980. If all goes well, the new pipeline should be completed and fully operational by the end of this year. By Garry Boulard ![]() Security and exhibition upgrades are in store for a popular zoo in southeastern New Mexico. Members of a committee serving the Roswell City Council have unanimously given their approval to an initial $720,000 request for funds for the work at the Spring River Zoo, located at 1306 E. College Boulevard. As proposed, the zoo will eventually see the building of new space for its two black bears, as well as a new educational farm exhibit. Altogether, the work, which will also see some security upgrades with the building of new perimeter fencing, may cost as much as $5 million. The perimeter project will replace around 3,600 feet of fencing that is 6 feet in height, with fencing that is 8-feet tall. A new entrance to the section of the zoo known as the Leprino Farmland Experience is expected to come in at around $6 million. For now, the zoo is seeking $400,000 in city funding for the design of the new entryway. As discussed, the new bear exhibit may appear cave-like and would also include grass, vegetation, and climbing structures. Located on 34 acres, the Spring River Zoo attracts nearly 2,000 visitors a month. As approved by the council’s Finance Committee, the $720,000 request is now on its way to the full council for review. By Garry Boulard ![]() While the continued presence of covid, in a new form, continues to spark uncertainty in many markets, the demand for office space has remained steady up to the end of last year, according to a new CBRE report. Based in Dallas, CBRE stands for Coldwell Banker Richard Ellis and is the largest commercial real estate services company in the world. “Uncertainty typically hampers leasing activity,” remarks Nicole LaRusso, a director of research and analysis for the company CBRE Group. “But,” continues LaRusso in a statement, “two indices referenced by CBRE indicate only tiny losses in office space leasing as of November, with a third holding steady. It appears that companies remain focused on their long-term needs for office space.” Using a measurement known as the Tenant-in-the-Market Index, the CRBE report shows that the office markets surveyed held steady with an average 85 ranking as of November. A robust 50% of the markets came in above 90. Leaders in the survey include New York and Houston, both ranked in the mid to upper 90s, and the big Dallas-Fort Worth metro market coming in at 101. Showing a gradually improving picture, the Tenants-in-the-Market Index was at 69 overall just over a year ago. Looking forward, CRBE has released an extensive report called 2022 U.S. Real Estate Market Outlook in which it is predicting a “positive outlook for the economy and commercial real estate” in the coming year. In an overview of the report, Richard Barkham, global chief economist and head of research for CRBE, noted that while the recent Omicron variant is creating market uncertainty as it pertains to new office leasing, “fiscal and monetary policy remains highly supportive of economic growth.” Barkham is additionally forecasting that the “supply/demand balance in the office sector will remain highly favorable for occupiers, but the pace of recovery will pick up following a sluggish 2021.” By Garry Boulard |
Get stories like these right to your inbox.
|