One concern being bandied around the industry is the lack of construction workers. Those in the hospitality industry, such as Ten X, have mentioned it recently and other construction industry experts are sounding alarm bells. Not only did the crash in 2008 cause many workers to turn in their hardhats for more lucrative opportunities in other fields, the energy boom lured even more construction workers away with higher paying jobs in the oil and gas industry. Most of these workers never returned–even after the energy downturn. Another concern is the construction workforce is beginning to age out and the industry is scrambling to attract a younger millennial workforce. According to a study from AGC, the construction industry hasn't been persuasive with millennials about the appeal of construction jobs and the talent pool is dramatically dwindling. One thing companies know for sure is attracting new talent and retaining the workers currently in place is a must.—Lisa Brown
BY THE NUMBERS
HOUSTON/NATIONAL—Employment in the oil and gas industry appears to have balanced as oil prices have staged a modest rally. In other employment news, hiring in September reaffirmed that job creation is moderating from the elevated levels of the past two years, according to Marcus & Millichap. The downshift to a more tempered pace likely reflects a shortage of qualified workers as unemployment hovers near 5%. Accelerated wage gains offer some evidence that employers are competing vigorously to fill positions, an action that could intensify inflation pressures in the coming year. The addition of 156,000 jobs last month fell somewhat short of expectations, although a broad range of industries expanded payrolls. Healthcare providers contributed 22,000 positions to the total and have created 3.9 million positions during the past 10 years. The enrollment of new workers in employee-sponsored coverage and an aging population will generate new positions in the near term, generating demand for medical office space.
HOUSTON—JLL recently released its third quarter industrial report. Here are a few key themes of the report: construction activity decreased to 7.2 million square feet, the lowest level since 2014. The Southeast industrial submarket continues to outperform, with 1.3 million square feet of completed transactions in the third quarter. Transactions accounted for 40.7% of total volume and net absorption was 1.2 million square feet. The 4.4 million square foot construction pipeline comprises 60% of total activity, with sublease space seeping into the industrial market. This space grew to nearly 4 million square feet in the third quarter, with 50% of leases this year in the 10,000 to 49,999 square foot range.
NEWS AND NOTABLES
METARIE, LA—RE/MAX Commercial Brokers Inc. has six agents ranked in the top 50 in the state, with three in the top 10. The six agents are Lucy Chun, Jonathan Shaver and Richard Juge in the top 10, as well as Matt Eaton, Peter Lombardo and Charles Mullin with top 50 honors.
BENTONVILLE, AR—Hufft Projects announced the opening of a studio located at 403 SE 5th St., minutes from the historic downtown square and in the Market District. The new office in Bentonville is the second location for Hufft Projects. It is currently working on a number of cultural and hospitality projects in the Northwest Arkansas Region, including the renovation to the former Tyson Food Processing plant, which is nearing completion. The building and site are part of the 8th Street Market District and home to the Brightwater Center for the Study of Food, an extension of Northwest Arkansas Community College, among other tenants.
DALLAS—Westmount Realty Capital LLC has named Donna Wilkins director of due diligence and closing for the company. Since joining the firm in October 2015, she has closed 2 million square feet of acquisition transactions, totaling $118.450 million.
DALLAS—Hermes Law, representing clients and cases impacting the insurance and risk industry, recently hired attorneys John Barcus (pictured), Leslie Davis and Matthew Brower, as well as case administrator Maria Rodriguez.
DEAL TRACKER
GREENWOOD VILLAGE, CO—A seven-year, 3.45% fixed-rate loan totaling $30.6 million has been arranged for Tuscany Plaza, a 260,000-square-foot class-A office asset in this southeastern Denver suburb. Holliday Fenoglio Fowler LP worked on behalf of the borrower, Crescent Real Estate LLC, to secure the loan through a correspondent life insurance company. Tuscany Plaza is located at 6312 South Fiddlers Green Circle, adjacent to the Arapahoe at Village Center light rail station at the northwest confluence of Arapahoe and Interstate 25. The 90% leased trophy office building features a courtyard and structured parking. Notable tenants include Red Robin and Xanterra Parks and Resorts. The HFF debt placement team representing the borrower was led by director Jim Curtin and senior managing director Eric Tupler.
GLENDALE, CO—A 10-year fixed rate loan of $19.032 million has been arranged for The Phenix at 4 Mile, a 177-unit apartment community in this Denver suburb, according to Holliday Fenoglio Fowler LP. HFF worked exclusively on behalf of the borrower, Slipstream Properties to secure the loan with five years of interest only through Freddie Mac's CME Program. The securitized loan will be serviced by HFF through its Freddie Mac program plus seller/servicer program. The Phenix at 4 Mile consists of eight residential buildings encompassing 11 studio, 119 one- and 47 two-bedroom units averaging 617 square feet.
JACKSONVILLE, AR—A 240-unit apartment complex has sold for $6.55 million. AndMark Oakwood Apartments LLC, an affiliate of the AndMark real estate investment firm of Los Angeles, bought the Oakwood Apartments project at 1310 Smithwick Dr. The seller is Valdovinos Properties LLC, led by the Ignacio Valdovinos Revocable Trust. The deal is backed with an eight-year loan of $5.3 million from Chambers Bank of Danville. The 12-acre development previously was linked with a February 2012 mortgage of $4.5 million held by BancorpSouth Bank of Tupelo, MS. Valdovinos Properties purchased the project for $5 million in February 2007 from Oakwood Apartments, led by the Edwin T. and Doris M. Gray Family Trust and the Sue F. Johnson Revocable Trust.
BUILDING BLOCKS
DENVER—A 10-acre sale in Dove Valley Business Park has been completed to Reliance Steel and Aluminum Co., according to Unique Properties Inc. The 10 acre site is located at the southeast corner of South Chambers Road and South Potomac Street (south of the Arapahoe County Regional Park). The buyer will construct a facility for Olympic Metals consisting of approximately 67,500 square feet with 6,000 square feet of office area and 61,500 square feet of warehouse area. The facility will have two dock-high doors and four drive-in doors (and 10 future dock high doors). The site is designed to accommodate an additional building area of approximately 77,000 square feet.
ALBUQUERQUE, NM—Ken Simonson, a national economist specializing in the construction industry for the Associated General Contractors of America, gave his annual update in New Mexico recently. Almost every type of construction, from building schools and hospitals to highways and roads, is projected to grow slower in 2017. In New Mexico, construction contributed $3 billion to the state's GDP, a 3.7% increase compared to 2014. Construction wages and salaries in 2015 totaled $2 billion in New Mexico, and the average construction worker's pay was $43,500.
One concern being bandied around the industry is the lack of construction workers. Those in the hospitality industry, such as Ten X, have mentioned it recently and other construction industry experts are sounding alarm bells. Not only did the crash in 2008 cause many workers to turn in their hardhats for more lucrative opportunities in other fields, the energy boom lured even more construction workers away with higher paying jobs in the oil and gas industry. Most of these workers never returned–even after the energy downturn. Another concern is the construction workforce is beginning to age out and the industry is scrambling to attract a younger millennial workforce. According to a study from AGC, the construction industry hasn't been persuasive with millennials about the appeal of construction jobs and the talent pool is dramatically dwindling. One thing companies know for sure is attracting new talent and retaining the workers currently in place is a must.—Lisa Brown
BY THE NUMBERS
HOUSTON/NATIONAL—Employment in the oil and gas industry appears to have balanced as oil prices have staged a modest rally. In other employment news, hiring in September reaffirmed that job creation is moderating from the elevated levels of the past two years, according to Marcus & Millichap. The downshift to a more tempered pace likely reflects a shortage of qualified workers as unemployment hovers near 5%. Accelerated wage gains offer some evidence that employers are competing vigorously to fill positions, an action that could intensify inflation pressures in the coming year. The addition of 156,000 jobs last month fell somewhat short of expectations, although a broad range of industries expanded payrolls. Healthcare providers contributed 22,000 positions to the total and have created 3.9 million positions during the past 10 years. The enrollment of new workers in employee-sponsored coverage and an aging population will generate new positions in the near term, generating demand for medical office space.
HOUSTON—JLL recently released its third quarter industrial report. Here are a few key themes of the report: construction activity decreased to 7.2 million square feet, the lowest level since 2014. The Southeast industrial submarket continues to outperform, with 1.3 million square feet of completed transactions in the third quarter. Transactions accounted for 40.7% of total volume and net absorption was 1.2 million square feet. The 4.4 million square foot construction pipeline comprises 60% of total activity, with sublease space seeping into the industrial market. This space grew to nearly 4 million square feet in the third quarter, with 50% of leases this year in the 10,000 to 49,999 square foot range.
NEWS AND NOTABLES
METARIE, LA—RE/MAX Commercial Brokers Inc. has six agents ranked in the top 50 in the state, with three in the top 10. The six agents are Lucy Chun, Jonathan Shaver and Richard Juge in the top 10, as well as Matt Eaton, Peter Lombardo and Charles Mullin with top 50 honors.
BENTONVILLE, AR—Hufft Projects announced the opening of a studio located at 403 SE 5th St., minutes from the historic downtown square and in the Market District. The new office in Bentonville is the second location for Hufft Projects. It is currently working on a number of cultural and hospitality projects in the Northwest Arkansas Region, including the renovation to the former Tyson Food Processing plant, which is nearing completion. The building and site are part of the 8th Street Market District and home to the Brightwater Center for the Study of Food, an extension of Northwest Arkansas Community College, among other tenants.
DALLAS—Westmount Realty Capital LLC has named Donna Wilkins director of due diligence and closing for the company. Since joining the firm in October 2015, she has closed 2 million square feet of acquisition transactions, totaling $118.450 million.
DALLAS—Hermes Law, representing clients and cases impacting the insurance and risk industry, recently hired attorneys John Barcus (pictured), Leslie Davis and Matthew Brower, as well as case administrator Maria Rodriguez.
DEAL TRACKER
GREENWOOD VILLAGE, CO—A seven-year, 3.45% fixed-rate loan totaling $30.6 million has been arranged for Tuscany Plaza, a 260,000-square-foot class-A office asset in this southeastern Denver suburb. Holliday Fenoglio Fowler LP worked on behalf of the borrower, Crescent Real Estate LLC, to secure the loan through a correspondent life insurance company. Tuscany Plaza is located at 6312 South Fiddlers Green Circle, adjacent to the Arapahoe at Village Center light rail station at the northwest confluence of Arapahoe and Interstate 25. The 90% leased trophy office building features a courtyard and structured parking. Notable tenants include Red Robin and Xanterra Parks and Resorts. The HFF debt placement team representing the borrower was led by director Jim Curtin and senior managing director Eric Tupler.
GLENDALE, CO—A 10-year fixed rate loan of $19.032 million has been arranged for The Phenix at 4 Mile, a 177-unit apartment community in this Denver suburb, according to Holliday Fenoglio Fowler LP. HFF worked exclusively on behalf of the borrower, Slipstream Properties to secure the loan with five years of interest only through
JACKSONVILLE, AR—A 240-unit apartment complex has sold for $6.55 million. AndMark Oakwood Apartments LLC, an affiliate of the AndMark real estate investment firm of Los Angeles, bought the Oakwood Apartments project at 1310 Smithwick Dr. The seller is Valdovinos Properties LLC, led by the Ignacio Valdovinos Revocable Trust. The deal is backed with an eight-year loan of $5.3 million from Chambers Bank of Danville. The 12-acre development previously was linked with a February 2012 mortgage of $4.5 million held by BancorpSouth Bank of Tupelo, MS. Valdovinos Properties purchased the project for $5 million in February 2007 from Oakwood Apartments, led by the Edwin T. and Doris M. Gray Family Trust and the Sue F. Johnson Revocable Trust.
BUILDING BLOCKS
DENVER—A 10-acre sale in Dove Valley Business Park has been completed to Reliance Steel and Aluminum Co., according to Unique Properties Inc. The 10 acre site is located at the southeast corner of South Chambers Road and South Potomac Street (south of the Arapahoe County Regional Park). The buyer will construct a facility for Olympic Metals consisting of approximately 67,500 square feet with 6,000 square feet of office area and 61,500 square feet of warehouse area. The facility will have two dock-high doors and four drive-in doors (and 10 future dock high doors). The site is designed to accommodate an additional building area of approximately 77,000 square feet.
ALBUQUERQUE, NM—Ken Simonson, a national economist specializing in the construction industry for the Associated General Contractors of America, gave his annual update in New Mexico recently. Almost every type of construction, from building schools and hospitals to highways and roads, is projected to grow slower in 2017. In New Mexico, construction contributed $3 billion to the state's GDP, a 3.7% increase compared to 2014. Construction wages and salaries in 2015 totaled $2 billion in New Mexico, and the average construction worker's pay was $43,500.
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