Add one more to the growing list of proposed and recently developed business and industrial parks in southern Arizona. The Irvine, California-based Shopoff Realty Investments has announced that it wants to build a business park in Mesa that would see the construction of some 16 buildings on a nearly 270-acre site. Additional construction will see two retail buildings for the use of employees working in the park. The structures will go up on the southeast side of the city at the intersection of E. Elliott Road and S. Sossaman Road. To be called The Block on Elliott, the park will be built out over a planned three stages. Upon completion, it is expected that The Block on Elliott will comprise some 3.5 million square feet. The Shopoff company announced its purchase of the Mesa site, which was once a vast dairy farm, last fall. In announcing that initial investment, Brian Rupp, Shopoff executive vice-president, noted that the city of Mesa has “seen tremendous growth in the residential, commercial, and industrial markets over the past decade.” Launched in 1992, Shopoff is known for its development of large, multi-use projects, primarily in California. By Garry Boulard
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Coming after several years of wildfires that destroyed hundreds of homes and businesses in various parts of Colorado, lawmakers in the Centennial State are contemplating a bill that would implement a series of new building codes to be carried out by local governments. As proposed by Senator Lisa Cutter, the legislation would create a statewide governing code board empowered to classify wildfire danger zones. The idea has won the support of local fire chiefs across the state, who have previously expressed concerns about homes being built in regions and area of Colorado most subject to wildfires. The issue is a particularly painful one for both state leaders and residents: in late 2021 and early 2022 what is now called the Marshall Fire, stretching some 3 miles from the town of Superior to the city of Louisville, resulted in the destruction of up to 1,100 homes. Altogether, that fire caused more than $2 billion in property damages, including a shopping center and hotel. As proposed, a governing code board would adopt both building and landscaping codes for cities and towns to follow. At the same time, it would put in place an appeals process for those cities and towns to modify any new code. Criticism of the proposal has centered on the state taking on powers that should properly belong to local governments, and the possibility that such new codes will make it more expensive to build new housing. A separate bill sponsored by Representative Marc Snyder would expand an existing wildfire mitigation grant program, allowing it to focus on how to make houses more resilient to wildfires. That legislation is now under review in the House Agriculture, Water & Natural Resources Committee. By Garry Boulard The construction industry’s need for new workers now exceeds 546,000 according to a new study. A proprietary model developed by the Washington-based Associated Builders and Contractors indicates that while construction employment has generally been consistently on the upside for the last two years, the numbers of those employed are still too low to meet current needs. That model, looking at the historical relationship between construction spending growth and employment, assumes the need of roughly 3,900 new jobs for every $1 billion in new construction spending. In a statement, Anirban Basu, chief economist with ABC, noted that “many contractors continue to experience substantial demand from a growing number of mega-projects associated with chip manufacturing plants, clean energy facilities, and infrastructure.” But at the same time, added Basu, there remains too few younger workers entering the skilled trades, “meaning this is not only a construction labor shortage, but also a skills shortage.” While entry-level construction workers have accounted for roughly 4 out of every 10 new jobs, the number of skilled construction workers has grown much more slowly. And in some segments of the industry, since as carpenters, it has actually decreased. The matter is only expected to worsen as more and more members of the Baby Boom generation retire in the coming years. The ABC study indicates that in order to meet industry demand, there will need to be at least 342,000 new workers hired by 2024. By Garry Boulard In a move to create more affordable housing in Arizona, a bill has been introduced in the state legislature that will allow for denser developments via a reform of existing local zoning laws. Introduced by Senator Steve Kaiser, SB 1117, which was recently approved by the Senate Commerce Committee, will place “limitations on housing design standards,” among other code changes. If passed, the legislation would require cities and towns throughout the state to allow for everything from new homes, duplexes, and triplexes on very small lots in residential areas. Moreover, in a move to do away with automatic local government zoning decision, the legislature would require that the governing bodies of any municipality “must adopt by ordinance a citizen review process that applies to all rezoning and specific plan applications that require a public hearing.” Developers have long complained that the construction of affordable housing in Arizona is hampered by any number of zoning laws and requirements on the local level that make it too problematic and expensive to pursue such projects. Kaiser’s bill has so far received the backing of the Arizona Association of Realtors, as well as the Arizona Multi-Housing Association, among other organizations. It is opposed by the League of Arizona Cities and Towns, which maintains that drastically altering current local zoning procedures does not guarantee new affordable home construction. By Garry Boulard A popular airport shuttle company in Colorado has announced plans to build a new headquarters and garage in Longmont. Eight Black Partnership LLC has been providing shuttle services to and from the Denver International Airport, as well as the University of Colorado at Boulder, and other points in between for nearly a decade. The company, according to the Longmont Times-Call, not only offers a shuttle service but is also a “black car transportation operator, event company, security business, and provider of concierge services.” The company, with just a little over a year left on the lease for the property it currently operates out of at 205 Ken Pratt Boulevard, wants to build what will likely be a 30,000 square foot facility, near its current location. That facility will include a maintenance shop to service the roughly 100 vehicles that making up Eight Black’s fleet, a fleet that includes buses, sedans, and sports utility vehicles. The company is currently in the process of securing the site for the new home, address of which is for the present undisclosed. In an interview with BizWest, Simon Chen, chief executive officer of Eight Black, said the new facility will comprise the most “environmentally friendly footprint possible with plans to include solar panels covering the entire roof section, recycled water for Washington vehicles, and up to a dozen electric vehicle charging stations.” By Garry Boulard Terms that have long defined residential retail behavior may not apply to 2023, according to the findings of a research team at the real estate site Realtor.com. Those findings note that a mix of influences, including the overall economy, mortgage rates, and uncertainty about the future of inflation, have combined to create…confusion. This means forget what in the past has been called a “buyer’s market” or “seller’s market.” “Today, real estate is ‘nobody’s market,’” remarks Danielle Hale, chief economist for Realtor. In an analysis for the site, Hale notes that while the number of homeowners nationally continues to lag, “inventory and time on market continues to climb, reflecting still-hesitant buyers.” Among the industry’s mixed signals: mortgage rates for a 30-year fixed-rate home loan have steadily fallen in recent months but remain high enough to “leave a whole lot of buyers leery about closing the deal.” At the same time, median home listing prices in the neighborhood of $400,000 are up over the same time last year, making the dream of owning a home for many Americans increasingly elusive. Add into the mix the fact that more homes are sitting on the market. Earlier this month, the national inventory was up by 70% over where it was in February of 2022. With new listings declining, says Hale, “the growing number of homes for sale reflects still-low buyer interest amid high costs.” Despite these challenging and sometimes even bleak numbers, Hale thinks the market may be incrementally moving forward. There is evidence that buyers are still buyers, only for the present they are also carefully considering their options before making a deal. At the other end, if a home is priced right, a seller can still sell. “Longer time on market overall doesn’t necessarily mean longer time on market for the most desirable homes,” Hale adds. By Garry Boulard A long-running homeless shelter program in El Paso is receiving big federal funding for the construction of a new demographic-specific shelter. Located at 1208 Myrtle Avenue, the Opportunity Center for the Homeless was founded in early 1994 and has not only provided shelter for homeless men and women, but also up to 120,000 meals a year for the same population. Now Texas Congresswoman Veronica Escobar has announced that just over $2.4 million has been awarded to the center for construction of a facility that will provide shelter for elderly men. As designed by the Wright & Dalbin Architects of El Paso, the new three-story facility will house 34 beds, along with kitchen and dining space. Additional features: a laundry room and showers. What is being called La Casa de Abuelitos will go up on a vacant lot at 150 Brown Street in a mostly residential area of downtown El Paso. The Center opened a two-story facility for women in the summer of 2016. By Garry Boulard Colorado Legislation Aims to Make It Easier for Local Governments to Purchase Private Properties2/15/2023 A bill is moving its way through the Colorado House of Representatives that, if passed, would allow cities and counties to purchase apartment buildings prior to any bids made by private investors or real estate groups. Sponsored by Representative Andrew Boesenecker, House Bill 23-1190 ultimately seeks to provide more affordable housing opportunities for local governments in acquiring residential units. The bill would give city and county governments an initial two-week period in which to make a bid on a given property, followed by an additional 90 days to secure financing. The measure has sparked the opposition of the Colorado Apartment Association, as well as several other industry groups. Critics of the bill say it would prove a downer on the real estate market due to the delays between when a property is first listed and available to be bid on. Those delays include a 180-day closing period after a government entity has made a bid. The bill is currently under review in the House Transportation, Housing & Local Government Committee. By Garry Boulard In a move to prevent the kind of supply chain issues that challenged builders last year, a new study is suggesting use of what is called a “transparent supply chain.” As published by the New York-based think tank Rebellion Research, the study, What Are the Current Supply Chain Issues? asserts that in the last 30 years many firms have adopted “the Japanese tiered supply chain approach.” This means instituting a system not only carefully monitoring issues along the supply chain process, but also “using new innovative technology” to streamline various processes. “The presence of blockchain technology has dramatically increased over the past decade, with its use becoming prevalent in diverse industries ranging from agriculture to banking,” the Rebellion Research study notes. In essence, blockchain technology increases efficiency by allowing firms to complete transactions directly, and thus eliminating third parties. Such technology serves as a digital ledger capable of storing any type of data, but in so doing, “its decentralized nature makes it nearly impossible to forge or change data already within the ledger, making it ideal for supply chain management.” More to the point, because every step and level of the supply chain process is copiously documented, firms can trace the very beginning of any supply problem. “If a firm foresees a potential interruption within a supplier, they can choose to utilize another supplier in order to continue smooth business operations.” At its core, the technology greatly increases the integration of financial and logistics services, thus allowing for a greater collection of data between stakeholders. The supply chain issue reached epic proportions in 2021 and 2022 due to such problems as a global chip shortage and lack of workers. Noting that the supply chain interruptions of those years ultimately helped create the essentials for a recessionary economy, the study nevertheless contends that the interruptions have, in the end, only helped policymakers and economists to begin to know “where to strengthen the supply chain.” That chain, says the Rebellion Research study, “will only become more advanced and diversified as technology continues to modernize, making it essential to strengthen those links now in order to prevent future faults.” By Garry Boulard An existing one-story brick church in the downtown Triangle Neighborhood of Phoenix may be repurposed as an apartment complex. Officials with the Mercy Hill Church say the building, which features a nave with intricate wooden ceiling cross beams, is now under contract to be sold to the Dallas-based Trumont Group. That company specializes in investing in and developing large residential properties in both the Lone Star State and Arizona. Located at 745 W. Fillmore Street, in a neighborhood of modest homes and some new apartment construction, the church building has some structural issues, including a partially collapsed roof. In selling the property, Mercy Hill has announced that it will build a new worship facility on land nearby. For more than 20 years dating to the early 1980s the building was known as the Church on Fillmore, before becoming, within the last decade, the Mercy Hill Church. A schedule for when work on the church will begin has not yet been announced. The Trumont Group has completed multi-story apartment projects ranging in size from 228 units to 374 units respectively in Fort Worth and the city of Benbrook, Texas. By Garry Boulard |
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