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NECA’s 2010 Association Executive Institute in Boston, March 1-3, gave chapter executives an insider’s look at the city that will host the association’s national convention and trade show, Oct. 2-5, and the opportunity to learn from their colleagues around the country about how NECA chapters are coping with a range of issues. more >>
Any type of contractor who performs renovation or repair work that disturbs old, lead-based paint in homes, child care facilities, and schools built before 1978 must be “lead-safe” certified by EPA — or else risk hefty penalties. more >>
Electrical Construction is unique in many ways. Specific to safety the nature of our work mandates special attention to electrical energy without neglecting the hazards common to all construction trades. Until now assembling the components needed for a complete electrical safety written program has been an onerous chore. With NECA’s release of the Electrical Contractor Safety Program manual there is a solution. This new program offers written programs as well as guidance to references and ... more >>
The "Hiring Incentives to Restore Employment Act" was passed in the Senate and will go up against a much broader measure in the House. NECA intends to use every opportunity to have pension law reform and Building Star energy-efficiency Incentives included job-creation bills and other related legislation. more >>
NECA is involved in lobbying efforts to advance legislation that would address a growing problem among unscrupulous employers that intentionally mis-label their workers as independent contractors rather than as employees. more >>
Don Fornes’s blog post on ENR, “The Coming Renaissance of Electrical Contracting” cited NECA’s Energy Solutions blog as a good source for information about the evolving role electrical contractors are playing in the green energy revolution and smart building system integration. more >>
President Obama chose the joint training facility of the Washington, D.C. Chapter, NECA and IBEW Local 26 in Lanham, Md., to announce that his administration is guaranteeing $8 billion in loans to construct new nuclear power plants. The president also discussed federal investment in green energy job training. more >>
Employers with 11 or more workers are required to post in their workplaces a summary listing the total number of job-related injuries and illnesses that occurred in 2009 and were logged on the OSHA 300 form. This summary (OSHA Form 300A) must be displayed from February 1 through April 30 in a common area wherever notices to employees are usually posted. more >>
NECA and the other members of the Rebuilding America coalition are urging Congress to support a package of rebates and tax incentives that could create hundreds of thousands of energy-efficiency retrofitting jobs this year. more >>
OSHA has notified NECA of a new eTool now available on its website. It provides a detailed review of the requirements of OSHA's Electric Power Generation, Transmission and Distribution standard (29 CFR §1910.269). more >>
Citing Government Accountability Office reports that thousands of federal contractors owe billions in unpaid taxes, President Obama has ordered the IRS to check out whether current federal contractors are tax-compliant, and the Office of Management and Budget (working along with other agencies) has been given 90 days to come up with procedures to ensure that tax-delinquent contractors are debarred from further government work. more >>
Citing Government Accountability Office reports that thousands of federal contractors owe billions in unpaid taxes, President Obama has ordered the IRS to check out whether current federal contractors are tax-compliant, and the Office of Management and Budget (working along with other agencies) has been given 90 days to come up with procedures to ensure that tax-delinquent contractors are debarred from further government work. more >>
At its January meeting, ELECTRI Council members select six projects to launch in 2010. Link to meeting title to review proposals and powerpoint presentations of each project approved. If you are interested in participating on a Project Task Force, contact the ELECTRI office at 301-215-4539 or lac@necanet.org more >>
Even though it is unclear how and when congressional leadership negotiations on health care will conclude, and how they will be affected by the upcoming vote in Massachusetts to select a new U.S. senator, NECA and allies are continuing to push hard to keep the Merkley amendment in the final legislation. The situation is fluid and could change quickly, so NECA members and chapter office are asked to be alert to calls for swift action. more >>
Employers with 11 or more workers are required to post in their workplaces a summary listing the total number of job-related injuries and illnesses that occurred in 2009 and were logged on the OSHA 300 form. This summary (OSHA Form 300A) must be displayed from February 1 through April 30 in a common area wherever notices to employees are usually posted. more >>
A proposal to narrow the small business exemption in the Senate’s health care reform bill is causing construction industry participants to choose sides. NECA is definitely on the "pro" side and is working hard to gain support for the Merkley amendment in the House and Senate, with the two chambers of Congress to begin work on hammering out compromise legislation after January 19. more >>
With the growing availability of affordable but quality Grade A office space in Kowloon East, the occupation cost gap between Hong Kong and leading Pearl River Delta cities is closing.
In today’s highly competitive corporate world, it is more important than ever to understand your real estate costs and ensure flexibility to adapt to a changing environment.
Over the next two years, the Shanghai market will have a strong supply of decentralised grade-A office space to meet the increasing tenant demand for lower cost options just a stone’s throw away from the CBD.
The Real Estate market in the NCR (National Capital Region) has witnessed dramatic changes both in terms of developer offerings and the tenant landscape.
We know after times of uncertainty things will improve, but until then Jones Lang LaSalle has identified ten key strategies for managing your real estate assets.
In industrial sector, we are seeing the domestics market playing more important role than ever before. While export demand decreases dramatically, the combined impact of government economic policy and infrastructure investment and flourishing retail market boost more domestic industrial activities.
In the current market, tenants face a number of constraints as well as a rigorous decision making process. We asked Michael Greene to answer some questions from a tenant perspective and explain how, as a landlord, you can reduce your lease up time in the current market.
The Mumbai real estate market has been traditionally dominated by financial services companies, being now faced with massive consolidation opportunities.
Many manufacturers owning and operating their facilities exploring various asset strategies as a way to free up cash and strengthen their balance sheet.
In today’s economic climate, outsourcing facilities management (FM) services in the industrial sector is an emerging trend. In China, this trend is particularly prevalent.
In the Shanghai residential market, buying momentum remains strong. Luxury has joined the rally, with sales up dramatically in March, April, and May in many projects. Higher sales volumes are generating more optimism among developers, who are now looking to increase land banks. Regulatory outlook remains supportive.
The investment market in Japan has been mostly doom and gloom since the last quarter of 2008. The market has just begun to change with the rollover of the financial year in April.
In view of the recent slowdown in the uptake of space, developers are offering "fit-outs" as a value add in order to take on capital costs. But are clients making the most of this opportunity?
With robust fundamentals and macro economic factors in place, India's real estate demand is going to resurface faster than the other economies of the world.
Earl Webb - CEO Capital Markets, Americas and Steve Collins - Managing Director, International Capital Group (ICG), provide their insights and projections on the Australian investment market from a US perspective.
Current assumptions about rental rates, debt underwriting, exit cap rates and investor's return requirements are pushing down values by as much as 50%.
Has Spring come early to Shanghai's high-end
and luxury residential market? There may be
fewer expats in Shanghai, and rents may be
falling, but buying interest has returned. What
is behind the rebound in transaction volumes?
Increasingly tenant-favorable market conditions
in Shanghai provide corporate occupiers with opportunities to re-assess and restructure their
existing office rental leases and achieve
immediate cost savings.
The investment case for sustainability is still strong, despite the economic downturn. In fact, sustainability is representing a real opportunity to cut costs in the short-term while ensuring the long-term viability of real estate decisions.
The construction materials market is stabilizing. Production increased 0.8% in the last three months and prices rose 2.1% although much of the price increase is imported inflation. It is premature to conclude that sustained expansion has begun, says Reed Construction Data chief economist Jim Haughey. more >>
Construction equipment shipments from US factories increased 20% in the last five months almost entirely due to higher exports while equipment imports have been steady, says Reed Construction Data chief economist Jim Haughey. more >>
Total construction spending dropped 0.6% in January. This is the net of the still slowly declining trend in overall construction spending, a second month of unseasonably bad construction weather and the usual monthly flip-flop in residential remodeling spending, this time a large increase. Currently the underlying declining trend is likely less than 0.6%/month, probably 0.3-0.5%/month. Later data revisions may restore this trend to the reported data for the last few months, says Reed Construction Data chief economist Jim Haughey. more >>
The 0.5% January partially reverses a small gain in December. Heavy construction spending is now 3.2% below the stimulus boosted September level. As expected, the stimulus plan is not enough to offset the growing weakness in state and local government financial positions and the refusal of Congress to find a permanent source of funds for the federal highway program, says Reed Construction Data chief economist Jim Haughey. more >>
The monthly drop in January from December was 2.1%. Spending for every type of project declined except for a marginal increase for amusement and recreation. The largest declines were 11% for hotels and 5% for manufacturing. This pattern is consistent with a negative weather impact which is also seen in the 75,000 construction layoffs in January, says Reed Construction Data chief economist Jim Haughey. more >>
Single family construction spending was unchanged in January. This continuing stall after the mid-2009 pickup is due both to bad weather and the timing of the on-off-on down-payment subsidy. Nonetheless, the underlying trend is still modest growth, says Reed Construction Data chief economist Jim Haughey. more >>
The new home market has stabilized over the last nine months at a depressed level, about one-third of the underlying demographic demand for new homes. The inventory of new homes for sale is largely unchanged in the last three months confirming that the current level of housing starts is sustainable at the current inventory level, says Reed Construction Data chief economist Jim Haughey. more >>
Given that, among the 50 largest metro areas in the country, Washington D.C. has the second lowest unemployment rate and the second highest rate of employment growth, it arguably has the strongest economy in the country. more >>
From one month to the next, the whole world keeps hoping that the U.S. labor market will improve. It’s not impossible for gross domestic product growth to occur in what is still the world’s largest economy without an increase in jobs, but it is certainly more of a challenge. February was one more month of disappointment – and one more month of the “jobless recovery” – according to the U.S. Bureau of Labor Statistics. Between the first and second months of 2010, the net change in employment was -36,000 jobs. While this is an almost insignificant figure, given a total jobs level of 130 million, it is still on the wrong side of ledger. more >>
RSMeans’ Construction Cost Index for 30 major cities remained under wraps for the latest reporting period, January 2010. The year-over-year change was negligible at only -0.5%. The quarter-to-quarter change annualized was +1.3%. The sharpest quarter-to-quarter annualized decline in the index was most recently recorded in April 2009 at -7.9%. The greatest quarter-to-quarter annualized increase in the index occurred in July 2008 at +18.5%. July 2008 was when world oil prices were at their all-time peak as they climbed in excess of $140 USD per barrel. The outlook for construction costs depends on market demand and commodity prices. more >>
The major North American stock market indices had a jog down in January 2010, but they bounced back in February. At February’s month-end, they were 2.5% to 4.0% higher than at January’s month-end. All four indices have made back between 45% and 60% of their most recent peak to trough declines. Fourth-quarter 2009 gross domestic product (GDP) numbers for both the U.S. (+5.9% quarter to quarter annualized) and Canada (+5.0%) were very strong. But there are some significant differences between the U.S. and Canadian economies. more >>
Construction materials price inflation jumped to a 1.3% monthly increase in January due to an 11.5% surge in diesel prices and continuing rapid rises in metal and metal product prices. However, diesel prices have declined $0.12/gal. since the January survey week so a smaller overall rise in the price index is likely in February. The monthly flip-flop in the price index due to short-term volatility in energy prices continues, says Reed Construction Data chief economist Jim Haughey. more >>
U.S. GDP growth of 5.7% in the fourth quarter of last year was certainly impressive, but it came largely as a result of an improvement in the inventory cycle and a pick-up in export sales to a world in recovery. This has masked some ongoing major problems in the domestic economy. Now it is being reported that single-family new home sales nation-wide dropped 11.2% between December and January. After showing significant improvement in the middle months of last year, new home sales have dropped back to a second trough position matching early 2009. more >>
According to just-released data, the year-over-year change in the Case-Shiller U.S. home price index in the fourth quarter of 2009 was -2.5%. This was a significant improvement versus year-over-year changes earlier in 2009. For example, Q3 2009 was -8.7%, Q2 was -14.7%, and Q1 was -19.0%. That’s the good news. There was also some lukewarm news in the latest Case-Shiller report. The big overhang of unemployed and underemployed workers is undoubtedly casting a pall over home prices, just as it is over consumer confidence. The U.S. Conference Board saw a 10 point drop in its consumer confidence index in February. more >>
The accompanying table shows 20 of the largest upcoming construction projects in California and Florida. They are all in the planning stage and are mainly new projects, but may also involve additions and/or alterations. more >>
Nonresidential building contractors are now experiencing the worst of the recession. Their reserves have been depleted by the long slowdown. Available work keeps shrinking as project completions exceed project starts even though starts have rebounded significantly from their lowest level last summer, says Reed Construction Data chief economist Jim Haughey. more >>
The value of construction starts increased 4% in January after a weak December in spite of continuing unseasonably poor construction weather. Starts were 25% higher than in the previous January. Job-site construction spending fell 10% since last January. Interpret the divergence this way. The sharp decline in starts in early 2009 cut starts below completions leading to the year-long fall in construction spending. Starts plunged nearly 50% from August 2008 to June 2009. Since then, starts have rebounded nearly 50% so the pipeline of work is again expanding and will lead to resumed increases in monthly construction spending in a few months, with progressively larger gains through 2011. more >>
Crain's Chicago - Real Estate
Real Estate - Commercial stories from Crain's Chicago Business
(Crain’s) – General Motors Co. is reinstating at least 15 Illinois car dealers.
The Illinois Automobile Dealers Assn. said it has been notified by the GM dealerships that the Detroit-based carmaker is returning them to its sales network. More dealerships may have been notified but have ... more >>
(Crain's) — Companies looking to relocate would find Chicago’s a better bargain than either of the country’s coasts, a study says.
The cost of operating a national headquarters or regional corporate office in Chicago for one year comes to nearly $27 million, according to a study ... more >>
(AP) — A divided appeals court has ruled probation is too soft a punishment for former Chicago Alderman Edward Vrdolyak.
The court ordered him resentenced on federal fraud charges involving a downtown real estate deal.
In his 16-page opinion, Judge Richard Posner of the 7th U.S. ... more >>
(Crain's) — The New York Supreme Court in Kings County has dismissed charges against Crown Theatres, an entity of the Chicago-based Crown family, which has ownership interests in real estate in New York and across the nation, Crown's legal representative Rosenberg Fortuna & Laitman announced ... more >>
(Reuters) — Bankrupt shopping mall owner General Growth Properties Inc., which is seeking to surface from bankruptcy protection next year, posted a narrower net loss in November from the month before, according to a monthly regulatory filing.
The owner and operator of regional shopping ... more >>
(AP) — The economic recovery gained traction in late fall as shoppers spent a bit more and factories bumped up production. That assessment Wednesday by the Federal Reserve marked its most upbeat view since the economy tumbled into recession two years ago.
The Fed's new snapshot of business ... more >>
(Crain’s) — Federal regulators have rejected Amcore Financial Inc.’s plan to raise capital, giving the troubled Rockford-based lender a month to raise the needed money or sell.
Amcore has until Dec. 4 to submit a new plan to the U.S. Office of the Comptroller of the Currency under ... more >>
(Reuters) — Building products maker USG Corp. reported a larger quarterly loss on Wednesday and said the near-term outlook remains weak, sending its shares down more than 8 percent.
The result is another sign the housing construction industry has yet to fully right itself after collapsing ... more >>
(Crain’s) — The Chicago French Market has signed 16 more vendors to the year-round indoor market scheduled to open in mid-November.
A Belgian fry shack, a cured meats seller and a raw-foods restaurant are among the sellers that will be part of a 15,000-square-foot European-style market ... more >>
(Crain’s) — The veteran ShoreBank executive in charge of the lender’s signature loans to apartment rehabbers — the portfolio whose success largely created the community bank’s national reputation for profiting while lending in low-income neighborhoods — has left the bank.
James ... more >>
(Crain’s) — The Civic Federation has come out with a report that generally concurs with Mayor Richard M. Daley's budget projections for the 2016 Olympics — with the exception of the development of the Olympic Village.
In a highly anticipated report, the tax-policy group said that "the ... more >>
(AP) — Gov. Pat Quinn says Illinois must do what it can to attract jobs to the state, so he signed a measure encouraging business development along freight rail systems.
A new rail transportation hub is intended for the Chicago suburb of Joliet and the measure will set aside some state taxes ... more >>
(Crain’s) — One restaurant chain’s failure has opened the door for another to walk into the Chicago market.
Seasons 52, owned by Orlando-based Darden Restaurants Inc., plans to put its first Midwest location in a former Bennigan’s spot in Schaumburg.
Bennigan’s parent company ... more >>
(Crain’s) — United Airlines confirmed Thursday that its operations staff will move to the Willis Tower from the airline's longtime home in Elk Grove Township. The migration downtown could begin in fall 2010.
Politics with Greg Hinz United’s move signals that the city — at least the Loop ... more >>
(Crain’s) — The city expects it will need $100 million from a tax-increment financing district to build roads and other infrastructure for the Olympic Village planned for the site of the former Michael Reese Hospital, the Sun-Times reported Thursday.
The TIF, which would be carved out of ... more >>
Patrick Landrosh insists he's not a gambler, but he has doubled down on residential real estate against some mighty long odds.
Mr. Landrosh, an accountant-turned-homebuilder, broke ground last September on a $1.8-million home in Lincoln Square without lining up a buyer first, just months before ... more >>
Plagued by delays, cost overruns and contract cancellations, the Franciscan Sisters have sidestepped default on $229 million in construction loans at an upscale senior housing tower they built just off Michigan Avenue. Now the nuns must find a way to revive sales amid the housing crisis.
As part ... more >>
Amid the worst office real estate market in memory, the tower has mounted an improbable comeback, last year adding leases totaling 880,000 square feet and halving its vacancy rate. more >>
Tom Cronin started working at Willis Tower in 1979 as an engineer on the second shift, from 4 p.m. to midnight. Among his duties: cleaning grease traps.
"You usually start with the worst shifts and the worst jobs," he says with a chuckle. "That's part of the fun of it."
These days Mr. Cronin, a ... more >>
The owner of Willis Tower unveiled plans last summer to "green" up the landmark skyscraper, an ambitious renovation that will cost $350 million.
Proposed improvements include replacing 16,000 single-pane windows with more-efficient models, installing boilers that utilize fuel-cell technologies ... more >>
NAI Hiffman Asset Management LLC unseats CB Richard Ellis Inc. as the leading property manager on Crain's just-published list. The ranking is based on total square footage of office, retail and industrial space managed in the six-county area.
NAI Hiffman had some major wins in 2009, including ... more >>
Katherine Scott faced a big challenge when the owners of Willis Tower handpicked her company, U.S. Equities Realty LLC, to take over management and leasing of the skyscraper in 2007.
Vacancy had risen to 20% amid competition from new buildings and fears that the 110-story tower was a terrorist ... more >>
Tenant representative David Stein has yet to get used to it. "I still don't call it Willis Tower," he says.
He's not alone, but reaction to the switch has been subdued compared to the pushback when Marshall Field's became Macy's in fall 2006. Fans of the old department store staged marches, ... more >>
If Willis Tower, one of the world's tallest buildings, is a city within a city, then veteran property manager Gary Michon is the mayor.
Mr. Michon, 52, was named the tower's general manager in July. He oversees day-to-day operations at the 3.8-million-square-foot skyscraper, home to office and ... more >>
The fight for General Growth Properties Inc., triggered by Simon Property Group Inc.'s $10-billion takeover bid, will turn in large part on the actions of four major players with competing agendas and money, jobs and reputations at stake.
John Bucksbaum, General Growth chairman, shareholder
The ... more >>
Quintin Primo III aims to get inside the Watergate, and he won't need a plumber to do it.
The Chicago real estate investor is using strictly legal means in his effort to seize control of the Washington, D.C., office building where a botched break-in 38 years ago led to the resignation of ... more >>
A Chicago condominium developer is proposing a $350-million residential and retail complex in Uptown that would be the biggest North Side development in decades.
Sedgwick Properties Development Corp., led by Marty Paris, hopes to break ground this year on the first phase of a three-tower project ... more >>
SPOTLIGHT: STEVE GRIMES
Job: President, CEO and CFO, Inland Western Retail Real Estate Investment Trust Inc., an Oak Brook-based shopping center owner, since October.
Vitals: 43 years old; bachelor's degree in accounting, Indiana University, 1989; audit/tax manager, Crowe Chizek Lysaught & ... more >>
Discount giant Target Corp. is in talks for a full-line store that could include groceries at the historic Carson Pirie Scott & Co. building on State Street.
A spokeswoman for the firm that owns the building, Joseph Freed & Associates LLC, says talks with Target are at an advanced stage for a ... more >>
An influential group of Chicago business leaders last week offered support for Gov. Pat Quinn 's proposal to boost corporate taxes 21 percent. But there's a catch: They want major budget cuts, a cheaper pension plan for state workers and scaled-back health benefits for state retirees.
Connexion Becomes ComEd Trade Ally
