Construction and General Contracting News


CONSTRUCTION AND GENERAL CONTRACTING NEWS:

So much is going on in construction and general contracting! As a leading south metro MN general contractor, our team thought it would be helpful to our readers to share some of the latest articles we have been following in the world of commercial construction. 

If you are a business owner and interested in real estate, development, commercial buildings, construction or the building process including project management, you have come to the right place!

In this article we will share some of our recent favorite articles related to property solutions, featuring building and construction.


LINKS:

The following list includes articles we have recently come across and thought you might also find helpful or just downright interesting!

 Construction Innovation

Roof Leaks – Where to check

 Top 10 Green Building Products for 2016

Commercial Drones – Eyes in the Sky

As you can see, there is a lot going on in the world of commercial construction, and this is just a small sampling. What are you currently interested in? Leave a comment below to share with us what interests you. We would love to hear from you and try to incorporate your ideas into future posts!

Additionally, you may find the following articles from our archive of interest as well:

Architecture Services

Roofing Maintenance

Commercial Construction Project Timeline

 


Whether you are a building owner or a tenant, there is a lot you should know as a business owner about the space from which you conduct your business. Contact our team today with any questions you may have about construction, general contracting, project management, development or the real estate process. We are here to help!

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ISNetworld: APPRO Receives a Grade of “A”!

ISNetworld Contractor Grading System used by International Food Manufacturer to Grade APPRO Development, Inc.’s Construction Safety Program and Insurance Compliance

ISNetworld member contractor logo - APPRO Development receives grade of AISNetworld “brings together Hiring Clients and contractors, creating safer work environments and lasting partnerships” according to the ISNetworld website page. “APPRO became a member of ISNetworld, after an international food manufacturing client requested we use ISNetworld to provide them with access to our safety and insurance information. As a result, we are very proud to have earned a grade of ‘A’,” according to Kathy Morse, Vice President for APPRO Development.

“We are thrilled to receive this grade and I look forward to continuing to work with a great company which places such a high value on safety; we will continue to work hard to maintain an ‘A’ rating” stated Patrick Simpkins, Project Manager for APPRO Development.

“Our goal throughout this process was to continue to provide our client with the quality construction they have come to expect from our general contracting firm, while adhering to our client’s strict standards. Our policies and procedures have been strengthened due to the ongoing review and verification services offered through ISNetworld, our company staff and our clients’ safety departments,” said Morse. “ISNetworld provided us the tools to ensure our safety standards were all-encompassing and meeting or exceeding industry standards. Our clients can utilize ISNetworld to ensure our safety program meets their standards and our insurance policies meet their requirements,” Morse concluded.

According to Jack Matasosky, President and CEO of APPRO Development, Inc., “Our hope is to provide a continued high level of service to not only this client, but to offer the same level of service and quality construction to other clients utilizing superior safety and insurance policies, as confirmed by ISNetworld.”

Interested in working with with an ISNetworld member contractor? Check us out at: ISNetworld or complete the form below in order to start a conversation.

Tell us a little more about you and your company, and how we might be of service to you…

ISNetworld: APPRO Receives a Grade of “A”!

ISNetworld Contractor Grading System used by International Food Manufacturer to Grade APPRO Development, Inc.’s Construction Safety Program and Insurance Compliance

ISNetworld member contractor logo - APPRO Development receives grade of AISNetworld “brings together Hiring Clients and contractors, creating safer work environments and lasting partnerships” according to the ISNetworld website page. “APPRO became a member of ISNetworld, after an international food manufacturing client requested we use ISNetworld to provide them with access to our safety and insurance information. As a result, we are very proud to have earned a grade of ‘A’,” according to Kathy Morse, Vice President for APPRO Development.

“We are thrilled to receive this grade and I look forward to continuing to work with a great company which places such a high value on safety; we will continue to work hard to maintain an ‘A’ rating” stated Patrick Simpkins, Project Manager for APPRO Development.

“Our goal throughout this process was to continue to provide our client with the quality construction they have come to expect from our general contracting firm, while adhering to our client’s strict standards. Our policies and procedures have been strengthened due to the ongoing review and verification services offered through ISNetworld, our company staff and our clients’ safety departments,” said Morse. “ISNetworld provided us the tools to ensure our safety standards were all-encompassing and meeting or exceeding industry standards. Our clients can utilize ISNetworld to ensure our safety program meets their standards and our insurance policies meet their requirements,” Morse concluded.

According to Jack Matasosky, President and CEO of APPRO Development, Inc., “Our hope is to provide a continued high level of service to not only this client, but to offer the same level of service and quality construction to other clients utilizing superior safety and insurance policies, as confirmed by ISNetworld.”

Interested in working with with an ISNetworld member contractor?

Tell us a little more about you and your company, and how we might be of service to you…

Construction Lending – Good News!

Construction Lending is Booming and that is Good News for us all!

construction lending is booming - go to APPRODEVELOPMENT.com to build your building today“Construction Lending Booming Again” was an article recently published on GlobeStreet.com by Jennifer LeClaire.

In this article, Greg Winchester explains more on just what is driving this trend…

“Gauging by Trimont Real Estate’s pipeline, the return is real. Trimont is reporting a 12.9% increase over the past 18 months. The company says these numbers reflect an hike in construction activity nationwide,” according to Greg Winchester.

The team at APPRO Development has seen a definite increase in building projects this year with many utilizing financing options that were not available in the past.

According to multiple sources, including the Trimont loan administration monitor, McGraw Hill Construction data, and the Fed’s Beige book, among others, all indicate the same thing – there is an uptick in construction lending and that is good for us all!

You may read the full article here: Construction Lending Booming Again.

 

Need to discuss options for financing your next construction project?

Our team of experts is here to help guide you through the process. We have worked with a variety of lenders over the years, forging strong relationships and would be happy to recommend a reputable lender for your next construction project. Feel free to call us at 952-469-2171.
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Manufacturing Construction Updates

Manufacturing Construction Updates: A Current Perspective on U.S. Manufacturing & Industrial Facilities

Manufacturing Construction Updates discussed by Kathy Morse“Manufacturing is coming back to the U.S., both in terms of jobs and demand for industrial facilities,” according to Robert Carr, in his recent article, “Manufacturing Sector Benefits from Hi-Tech Efficiency” in the National Real Estate Investor (NREI). This is an insightful article for both the manufacturing industry and for our organizations – APPRO Development, Inc. and CERRON Commercial Properties, LLC, as a commercial building services providers to the manufacturing industry. Some of Carr’s key points are:

  • We will see a larger number of manufacturing facilities in the years ahead
  • Larger, aged manufacturing facilities have [and will continue to] become functionally obsolete
  • [Many of] the new properties will…consist of expansions by current companies
  • The U.S. remains a manufacturing powerhouse today and that the trends we are seeing take shape in the market decidedly favor manufacturing
  • The manufacturing sector is actually above pre-recession volume (in terms of dollar value before and after the recession for the value of construction)

We are working with many business owners – in manufacturing, and other industries – who account for this improvement. Whether the need is to build a new facility, to add on to an existing site, or simply remodel, we help walk our clients through all their options. They have the information they need to then make the decisions to bring continued success to their organization. If you have considered a change in your building (manufacturing, industrial or other commercial building type), and want more information on current commercial construction trends, please give our team a call. We can help walk you through the process. Our process starts with a simple phone call or email, and we can guide you from there. No pressure, no stress – we are here to help! Give us a call today at 952-469-9444.

US Contractors Predict Stability & Growth

US Contractors – 2014 Update

US Contractors predict stability and growth, according to Daily Commercial News, on January 27, 2014, “Contractors are more optimistic about 2014 than they have been in a long time,” said Stephen E. Sandherr, the association’s chief executive officer.

“Many firms in the United States plan to start hiring again and most contractors predict demand will either grow or remain stable in virtually every market segment this year, according to survey results released by the Associated General Contractors of America.”

Read the full article here…

APPRO Development is a proud US contractor based in Lakeville, MN, serving the midwest since 1987. As an experienced general contractor, our team is ready to assist you with your 2014 construction needs.

Industrial Production Facility Construction Nears Completion: Mankato, MN

Imperial Plastics Industrial Production Facility Construction Nears Completion in Mankato, MN

The newest industrial production facility construction by APPRO Development, Inc. is nearing completion. A Temporary Certificate of Occupancy (TCO) has been issued on the Imperial Plastics Mankato project (click link to see more project photos). Owner furnished equipment installation (e.g. process piping, racking and cranes) is well under way and the final interior finishes are being installed which include: carpet, paint, and ceramic tile, to name a few.

It does not seem all that long ago that APPRO Development, along with representatives from near and far, came to celebrate the groundbreaking ceremony for Imperial Plastics as they kicked off construction of this 124,000 SF (approximate) manufacturing/production facility. Although, it was a whole lot sunnier and warmer back in August than it is now as we near the end of January 2014, the time has gone by rather quickly and we find ourselves nearing the time to turn over the keys. APPRO Development is targeting the end of February to turn the building over to the owner.

Do you have an existing building in the Mankato area and wondered, “what can I do with an existing warehouse building?” You may need some design ideas or a free market analyis. Or, possibly a new building is in your future, as you address your company needs. It is never too early to contact our professional team. Our no obligation initial consultation may provide just the answers you have been looking for. These were the first steps in working with this client and we would be happy to help you find a solution for your business, too. Contact our knowledgeable, friendly team today.

What to Look for in Investment Properties

Want to know what to look for in investment properties? This is a great place to start.

what to look for in investment properties information from CERRON Commercial PropertiesLove Real Estate? Thinking about getting into Investment Properties?

Most people know the common formula affectionately known as IRV.

Income = Rate X Value

Income is the net operating income (revenues minus operating expenses and before debt service).

Value is the real estate market value.

Rate is the capitalization rate. When you have a higher cap rate, the lower the value for the same amount of income or conversely, the lower the cap rate, the higher the value. Cap rate also reflects risk. Typically the higher the cap rate, the higher the risk. Lower cap rates come from credit tenants who are perceived as less risky. Cap rates run around 4% to 12% with an average of 8%. For easy figuring many use 10%–$100,000 of income is a $1 million value.

The other part of the equation is not reflected here: what does is cost to borrow. If interest rates remain low (as they are predicted to do), then the cost of borrowing will stay low and allow for greater property values that still provide a desirable rate of return. Some investors have recently enjoyed 5 year money for as little as 3% interest. When you can leverage your money, you can make more money, but it is also more risky. I suggest you talk to your banker before looking to buy to find out how much you could borrow and at what terms that work for you. If you don’t have a banker, we can provide several professional contacts we have enjoyed working with over the years.

Other things to look for:

  • quality of the tenants
  • length of the term of the leases in place and renewal terms
  • vacancy (and vacancy allowance)
  • quality of the building, grounds and parking lot
  • condition of HVAC
  • condition of the roof
  • responsibilities of landlord/tenant in the lease
  • property management
  • operating expenses—are they in line?
  • real estate taxes –property tax detail
  • location –ease of access, lit intersection
  • potential changes in roadways or development-contact the city
  • zoning code and allowable uses
  • potential reuse
  • parking stalls—parking ratio
  • visibility
  • signage

The good news is that anyone can be a real estate investor. The key is to have good people to help you with your property: banker, property manager, commercial real estate agent, contractor, accountant and real estate attorney. The APPRO/CERRON team can help with leases, sales, acquisitions, management, market/proforma analysis, architectural design, and construction. We have contacts to cover the other areas to fit your project. Take their professional advice, use common sense and follow the golden rule of real estate: don’t fall in love with it. When it is time to sell, sell.

<em>The information contained on this website and from any communication related to this website is for information purposes only. As with all financial matters, consult your tax, legal or accounting professionals to discuss how investment decisions may impact your specific circumstances.</em>

Warehouse Building Considerations: Midwest Review

Warehouse Building Considerations – What you should know before you buy, build or remodel

Warehouse building considerations have been a topic of discussion of late, as one of the building types APPRO/CERRON is frequently contacted about for real estate and construction projects happens to be warehouse projects. There have been some great deals on warehouses in the last few years, and a potential buyer is often posed with the dilemma of whether it makes the most sense to buy an existing building and spend the money to renovate it to his or her company’s individual needs, or design and build a warehouse custom built to those needs.

To build new, one potentially loses out capitalizing on the devaluation of existing buildings (the availability of which are quickly diminishing on the commercial market). To renovate, however, often means to compromise on some of the features of the building, and/or to invest money into a building whose components might not all last as long as those in a new building.

With APPRO pricing your projects, you can weigh the various pros and cons of either option to come up with a solution that best fits your needs before proceeding to hire us to assist you along whichever solution (buy, remodel, add or build) you choose.

Some of the other considerations that we’ve seen owners look at include more detailed considerations (or checklist), like the following:

  • What are the clear height dimensions and door size dimensions that will work best for you?
  • Are super-flat floors a requirement for forklift traffic, more typical of higher clear height warehouses?
  • Are steel fibers or a special floor coating required for wear?
  • Will high-speed racking be utilized?
  • What height will the product be stored to, and what will be stored in the warehouse, as this affects sprinkler coverage, and associated cost?
  • How susceptible will the walls be to damage from forklifts, which will affect whether the exterior walls are precast, metal or something else?
  • Will rail access be a consideration?
  • Will a loading dock be needed, as is typical, or just drive-in doors that close at pavement height?
  • If a loading dock is needed, will the design include locks to attach the truck to the dock while loading or unloading?
  • Is it important for the truck to be able to engage its dock and park, and then open truck doors (drive through docks); or is it OK to open truck doors before backing into its dock space?
  • Will there need to be a stop and go light system in place for trucks?
  • Will a canopy be needed above the overhead doors?
  • What kind of grade is acceptable driving in and out of the docks for trucks?
  • Will the warehouse need to be heated and/or cooled? Insulated?

There are more considerations, of course, than those above. But take a look at the list and consider which of these options are important to you when you make that all-important decision to buy or design/build.

Whether you are just starting the process or have been considering your building needs for a while, allow our team to assist you with any questions you may have about the construction (remodeling, additions or new building) process. We are here to help!

Secrets, secrets are no fun… Changes to LEED v4

Changes to LEED v4 – APPRO Architect Casie Radford Discusses Recent LEED Activity

 

LEEDBuilding-APPRO Development discussion of recent LEED v4 changes LEED Building. Source: Oregon-DOT (Flickr)

LEED (Leadership in Energy and Environmental Design) has been the primary program for certifying the sustainability and “greenness” of buildings for the past 15 years. Now LEED v4 has come out and the focus on the building industry has been expanded to include the manufacturing industry, particularly as it relates to materials and resources. The focus and responsibility is not off the building and construction industry, but will trickle down the line to understand more clearly where and how materials (and the raw materials involved) are manufactured and with what they are manufactured. Sustainability reporting is no longer the exclusive responsibility of the building industry.

Manufacturers and materials suppliers will now have stronger motivation to complete life cycle assessments (LCA) or they could see a decline in demand, as the use of their products for more than just one LEED credit won’t be allowed. Best to take care of LCAs, EPDs, and HPDs (mentioned later), before the requirement goes into full effect and LCAs may be harder to complete in a timely or cost effective manner. Don’t worry though, projects can file under the previous version of LEED up until 2015.

One interesting factoid about the revised credits are that one LEED point can be obtained if a manufacturer of a building product discloses information related to environmental and health impacts – even if it is not environmentally friendly or healthy. I understand the importance of honesty here and also that “transparency drives improvement for business”, but what about the point of LEED in the first place. Isn’t there another way to promote safe materials? Why should a product be rewarded by being honest if not an otherwise LEED credit acceptable material?

Utilizing LCA as a tool to assess products is an important tool for evaluating the true energy and environmental impacts a product has. A new tool created for product assessment is the Environmental Product Declarations (EPD) which is a third-party verified LCA. This tool will enable a product to achieve additional points if the impacts to the environment are below industry averages. This goes to show that a peer review is never undervalued. Similar to the transparency point, you can still get one LEED point for just having an EPD.

Supply chain information, for certified wood for example, is often viewed as highly confidential. To achieve a credit for the responsible sourcing of all raw materials; however, manufacturers are required to report extraction locations and supplier commitments for 90% of a product’s raw materials. The aim for LEED is to reward those who already openly disclose and communicate with suppliers to avoid future issues.

LEED v4 will also address hazardous materials by requiring companies to declare every ingredient more than 0.1% (by weight). For declaration alone one LEED point can be achieved, while another point can be had by proving they are dodging hazardous materials as determined by the government. The Health Product Declaration (HPD) has been created as a format for reporting a product’s ingredients.

Have concerns about commercial or industrial building materials or manufacturers; or, want to know more about how LEED has an impact on your next building project? Contact the APPRO Design and Architecture team for more information HERE.