There's another sign out there that things are improving. We are starting to see new construction again. When prices go down, new construction has a hard time competing, since the costs of land, site improvements, labor, and materials don't really go down much, so new construction can't compare to the price of a home that was built a few years ago. In addition, loans are harder to get, and most builders find it difficult to get financing for projects. Add in the time a completed home could sit on the market before selling, and you don't see much being started.
Lately, statistics from around the country show housing starts beginning to rise. We're at the end of that increase, since we don't have as much land, as much new employment, and costs as low as some other states. Even we, however, are noticing activity. There is always a portion of the buying public that seeks out new construction, especially people moving from other places, who want their new home to look like the home they left behind. In recent years, many of them have turned to renting, either because they left behind an unsold home, or because they were worried that it was the wrong time to be buying. Eventually, even the most skittish will want to settle down. And it looks as though that time may be upon us--good news for everyone!
Showing posts with label land. Show all posts
Showing posts with label land. Show all posts
Tuesday, February 7, 2012
Tuesday, October 20, 2009
Tenant Fit-up Issues
Today our Commercial Department, along with Petra Construction, hosted a panel to teach the ins and outs of tenant fit-up costs, procedures, time lines, and taxes. Tony Santore from Beers Hammerman was our guest accountant.
We had a good turnout, and the group asked lots of questions. It's a big issue for us, since many deals now fall apart over the costs of tenant fit-up. The big lessons: Most people don't start early enough, or leave enough time; he who has the cash is king, and there's never been a better time to build; learning the tax ramifications, and getting your accountant involved early in the process, can save you a lot of money; and Realtors, developers, and construction professionals should all work together, even before the land is purchased or the lease is signed.
After the panel, guests were treated to two presentations, one on BIM (a new way to visualize the space before it's built) and the other on estimating. All agreed that it was a great morning, and those of us in the real estate business look forward to helping our clients understand the questions to ask, and when to ask them.
We had a good turnout, and the group asked lots of questions. It's a big issue for us, since many deals now fall apart over the costs of tenant fit-up. The big lessons: Most people don't start early enough, or leave enough time; he who has the cash is king, and there's never been a better time to build; learning the tax ramifications, and getting your accountant involved early in the process, can save you a lot of money; and Realtors, developers, and construction professionals should all work together, even before the land is purchased or the lease is signed.
After the panel, guests were treated to two presentations, one on BIM (a new way to visualize the space before it's built) and the other on estimating. All agreed that it was a great morning, and those of us in the real estate business look forward to helping our clients understand the questions to ask, and when to ask them.
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