Category: Construction Loan Monitoring

The Dallas-Fort Worth (DFW) metroplex has been a beacon of construction growth and development in recent years. With the skyline peppered with construction cranes, it’s evident that the area is booming. As development continues to expand, it’s critical to ensure projects meet due diligence standards and protect owners through comprehensive representation. At Moran Consultants, we deliver end-to-end services that ensure project success from every angle.

Record-Breaking Construction Job Growth

According to a recent report from the Associated General Contractors, the Dallas area saw the most significant construction job growth in the United States last year. In 2023, the Dallas area added a staggering 12,300 building sector jobs, marking an 8% year-over-year increase. This surge in employment outpaced all other U.S. metro areas. On the Fort Worth side of the metroplex, an additional 2,500 construction jobs were created, further solidifying the region’s position as a leader in construction employment.

Major Construction Projects Driving Growth

Several large-scale construction projects commenced in 2023, contributing significantly to the job growth in Dallas-Fort Worth. Notably, ground was broken for the $500 million, 850,000-square-foot Wells Fargo regional office campus in Irving. Additionally, just north of downtown Dallas, work began on Goldman Sachs’ massive office complex. These projects are emblematic of the broader trend of office space and apartment construction that Dallas-Fort Worth leads in the country. These ambitious projects underscore the importance of robust construction loan monitoring and risk mitigation services to ensure timely delivery and mitigate financial risks.

Future of Construction in Dallas-Fort Worth: Growth Opportunities and Risk Mitigation Needs

As we move forward, the construction boom in Dallas-Fort Worth shows no signs of slowing down. The region’s ability to attract and retain a skilled workforce, coupled with its robust pipeline of major projects, positions it as a key player in the national construction landscape.

At Moran Consultants, we are proud to be part of this dynamic and rapidly evolving market. Our projects, including the Meadowbrook Apartment complex, East Foster Crossing multi-family apartment complex, The Sinclair Hotel, The National Thompson Hotel, and The Mayflower exemplify our commitment to contributing to the region’s growth and development.

With the opening of our new location in the Dallas-Fort Worth Metroplex, Moran Consultants is well-positioned to continue supporting the thriving construction industry. We look forward to participating in the region’s ongoing growth, delivering high-quality construction risk mitigation services that meet the needs of our clients and the DFW community.

Moran Provides Expertise in Construction Loan Monitoring, Due Diligence, and Owner’s Representation

At Moran Consultants, we offer a comprehensive range of services tailored to meet the needs of your project at every phase. With our Construction Loan Monitoring services, we facilitate risk management with an emphasis on communication, teamwork, and utilization of expertise throughout the underwriting and construction process. Focusing on project time, quality, and cost, we contribute to successful project outcomes.

Through our Due Diligence services, we provide critical insights and comprehensive assessments to serve as a foundation for decisive decision-making. Additionally, our Owner’s Representation services guarantee that your interests are protected throughout the construction process, from inception to completion, ensuring projects are delivered on time, within budget, and according to specifications. These services make us a trusted partner in ensuring the success of your construction project. No matter what your needs may be, our company strives to create a personalized service that is hand-crafted to meet your standards. Give us a call at 866-545-3350 or contact us online to see how we can help you on your next project.

In light of forthcoming regulatory changes, industry professionals must stay informed about updates that impact project specifications and compliance. Two significant updates: new requirements for Energy Star window and door certification and the upcoming ban on R-410a refrigerant in HVAC systems. Understanding these changes will help ensure that projects remain compliant and avoid potential disruptions.

Energy Star Window and Door Certification

Effective October 23, 2023, the US Environmental Protection Agency (EPA) has updated the requirements for Energy Star certification for windows and doors. This change could mean that many windows and doors currently specified in projects might no longer meet the updated Energy Star standards. It is important to verify that developers, designers, and contractors are aware of these new requirements to ensure compliance. Detailed information about the revised standards can be found here.

 

R-410a Refrigerant Phase-Out

R-410a refrigerant has been a staple for cooling homes and buildings for many years. However, its high hydrofluorocarbon (HFC) content poses a significant threat to the planet’s protective ozone layer. With the growing concern for the environment, the American Innovation & Manufacturing (AIM) Act was enacted, empowering the Environmental Protection Agency (EPA) to set stricter HFC standards. Following this, the EPA released a detailed plan in September 2021 to reduce HFC consumption significantly from 2022 through 2036.

Effective January 2025, the AIM Act will ban the use of R-410a refrigerant in HVAC systems across the United States. This ban coincides with new SEER2 requirements, which will raise energy efficiency standards for HVAC equipment manufactured from 2025 onward.

As R-410a is phased out, it is anticipated that new HVAC systems will include sensors and other mechanisms to detect the presence of R-410a refrigerant and prevent their operation, ensuring adherence to the new regulations. Currently, replacement equipment for systems using R-410a is not widely available. While an extension of this deadline is possible, there is no current indication from the EPA that this will happen.

 

How Moran Consultants Can Help

Moran Consultants is here to support your construction projects in navigating these new regulatory landscapes. With the help of our experienced team of in-house consultants, you can confidently address these new standards, avoid potential disruptions, and ensure the successful completion of your projects. Stay informed, stay compliant, and let us help you meet these challenges head-on.

With numerous stakeholders, complex processes, and the potential for miscommunication, the construction industry often faces challenges that can impact project timelines and outcomes. This is precisely where the power of construction consulting comes into play, acting as a catalyst for streamlined communication to ensure a successful project outcome.

 

What is a Construction Consultant?

A construction consultant offers strategic expertise and insight to optimize various aspects of a construction project. One of the fundamental features addressed by an experienced consultant is communication. The ability to convey information accurately and efficiently throughout the project lifecycle is fundamental for mitigating risks and ensuring timely completion. By identifying potential communication challenges early, consultants can develop proactive strategies to address these challenges before they escalate. This foresight minimizes the likelihood of misunderstandings and breakdowns in communication, fostering a more efficient project environment.

 

The Benefits of a Construction Consultant

Beyond the immediate strategies for communication improvement, construction consulting firms offer numerous long-term benefits. Projects under their guidance experience enhanced efficiency and have the potential for a project to remain on time and within budget. Here are several reasons how they contribute to enhanced communication:

Clear Project Goals and Objectives: Consultants work to establish clear and concise project goals and objectives. This clarity serves as a roadmap for the entire project team, reducing the likelihood of misunderstandings and promoting a unified understanding of the project’s needs.

Regular Project Updates: Consultants facilitate regular project updates to keep all stakeholders informed about the project’s progress through effective communication. This helps prevent surprises and allows for timely adjustments as needed.

Proactive Risk Assessment: Construction consultants are adept at identifying potential challenges early in the project planning phase. By conducting thorough risk assessments, they can anticipate issues that may arise and develop proactive strategies to address and mitigate these challenges.

Documentation and Reporting: Consultants ensure thorough documentation and reporting of project-related activities. This includes monthly progress reports and any other relevant information, providing a comprehensive record that aids in decision-making and accountability.

 

Why Choose Moran Consultants

Moran Consultants offers a specialized and efficient solution for effective communication through our construction loan monitoring service. Our team of consultants has the expertise to minimize risks, ensure stakeholder alignment, and provide transparent reporting crucial for successful project financing. With adaptive communication strategies and a commitment to efficiency, Moran Consultants have become invaluable partners in navigating the complex landscape of construction financing. With over 250 years of combined construction consulting experience, we have helped our clients mitigate risk across the country. We believe our years of success are attributed to our commitment to offering a personalized service tailored to each client’s individual needs.

Want to learn more about how Moran Consultants can help with your next CRE deal? Give us a call at 866-545-3350 or contact us online to learn how we can help safeguard your investment.

In recent years, New York City has become one of the leading cities in passing legislation to reduce greenhouse gas emissions. With their city buildings accounting for approximately two-thirds of their overall emissions, former Mayor de Blasio made a bold commitment to reduce these emissions and make the city carbon neutral by 2050. A significant step towards achieving this ambitious goal is through the passing of Local Law 97, which will be taken into effect beginning in 2024.

Local Law 97: A Key Component of the Climate Mobilization Act

Local Law 97, a crucial component of the Climate Mobilization Act, was passed by the City Council in April 2019, aligning with the Mayor’s New York City Green New Deal. This law outlines a comprehensive strategy to tackle emissions by decreasing and/or eliminating the carbon footprint of certain city buildings.

Goals and Targets of Local Law 97

The primary objectives for Local Law 97 are to reduce emissions produced by the city’s largest buildings by 40 percent by 2030 and a remarkable 80 percent by 2050. To achieve this, buildings over 25,000 square feet must adhere to new energy efficiency and greenhouse gas emissions limits by 2024, with even stricter limits taking effect in 2030. Moreover, Local Law 97 established the Local Law 97 Advisory Board and Climate Working Groups to provide guidance and advice to the city on the best practices to meet these ambitious sustainability goals.

Local Law 97 primarily targets buildings that exceed 25,000 gross square feet, however, it also encompasses clusters of buildings on the same tax lot that together exceed 50,000 square feet and buildings owned by a condo association governed by the same board, totaling over 50,000 square feet. These criteria are designed to address emissions from the city’s most substantial buildings while providing clarity on affected properties. Starting in 2024, buildings that exceed their annual emission limits will face a fine of $268 per ton of CO2 equivalent over the limit. Emissions will be calculated based on tons of CO2 equivalent per square foot.

Source: NYC Accelerator: New York City’s Climate Mobilization Act

There are some exemptions and compliance pathway options for properties such as affordable housing buildings, outlined within Local Law 97, ensuring that its application is both effective and fair. There are also numerous free resources available through NYC Accelerator for property owners to help them meet the new building requirements.

Staying Informed

To remain informed about Local Law 97 and its evolving implications, a valuable resource is the Department of Buildings (DOB) Greenhouse Gas Emission Reporting website. This website provides detailed information about emissions limits, exemptions, and compliance guidelines.

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A recent article published by Construction Dive entitled “Columbus embraces its role as ‘Tech Capital of the Midwest”, delves into the rapid growth of Columbus, Ohio, and its emergence as a tech hub in the Midwest. The article highlights the resilience of Columbus throughout the years, such as during the economic downturn of 2008-2009. While initially known for its construction activities in healthcare and education projects, the city has strategically shifted its focus towards extensive industrial and technological developments.

Columbus Grows from Small Town Atmosphere to Tech Hub

Home to Ohio State University and headquarters for major corporations such as Bed Bath & Beyond, Nationwide, and Big Lots, Columbus’ appeal to businesses lies in its unique blend of a small-town atmosphere and its growing urban status. Several businesses have taken advantage of this growing metropolis and are contributing to the transformation of Columbus into a tech hub. This includes:

• Intel’s colossal $20 billion semiconductor manufacturing facility
• Google’s multimillion-dollar data centers
• A $2 billion airport terminal expansion
• And a $1.9 billion hospital project

State and local governments have also played a pivotal role in attracting global corporations, such as Intel and Amgen, further facilitating the establishment of major factories and operations in the city. In 2022 alone, an impressive 75 groundbreaking projects commenced in the semiconductor, electric vehicle, and life sciences sectors.

The Challenges of Rapid Growth

Even though the city is seeing major developments, Columbus’ rapid expansion has also posed some challenges. Just like other cities across the country, construction companies are grappling with a shortage of skilled labor as they compete with other employers for the same workforce. Additionally, there is a noticeable scarcity of qualified instructors and inspectors for construction-related training programs. To address this labor crisis, the industry is investing heavily in training and continuing education for its workforce.

The Pursuit of Innovation & Progress

The surge in construction activity and the rise of Columbus as a prospective tech hub have prompted the city to warmly embrace its newfound status as the “tech capital of the Midwest,” a distinction acknowledged by the state’s Lieutenant Governor. This construction upswing, characterized by big-ticket projects, highlights Columbus’ promise to become a city for innovation and progress.

While facing the looming challenges of a limited construction workforce, Columbus’ journey from a small-town gem to an expanding tech epicenter is a testament to its unwavering determination and adaptability, offering countless opportunities for both businesses and residents alike.

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In the world of commercial construction, every fluctuation in costs and labor availability can significantly impact a project’s timeline and budget. An analysis recently published by the Associated General Contractors of America (AGC) sheds light on the challenges facing the construction industry, revealing a monthly increase in costs driven by a dramatic surge in diesel fuel prices. The survey also underscores the ongoing staffing challenges faced by contractors, which have a direct impact on project completion. This serves as a stark reminder that supply chain disruptions experienced during the COVID-19 pandemic have not yet been fully mitigated. Below is an overview of the key insights derived from AGC’s research as well as the benefits of having a construction consultant on your team to ensure the success of your investment.

Soaring Diesel Fuel Prices

The headline-grabbing aspect of the AGC’s analysis is the near-record leap in the diesel fuel price index. From mid-July to mid-August, the producer price index for diesel fuel skyrocketed by a staggering 34.6%. This surge represents the most substantial one-month increase in diesel fuel prices since 1990. Further exacerbating the situation, retail diesel prices have continued their upward trajectory, with a 77 cents per gallon increase over just ten weeks.

Impact on Bid Prices

The effect of the diesel fuel price spike is evident in the broader landscape of construction costs. In August alone, these costs increased by 1.1%, marking the highest jump since January. However, it’s worth noting that while fuel costs played a significant role in this increase, other commodity prices remained relatively subdued. The index for new commercial building construction, a measure of the bid prices contractors charge for new structures, saw a modest 0.2% uptick in August. Year-over-year changes were also relatively mild, standing at 0.1% for inputs and 4% for bids.

Stable or Declining Prices for Other Commercial Construction Materials

Apart from volatile fuel costs, many construction materials experienced stable or declining prices in August. Cement and architectural coatings, for example, saw flat price indexes. There were also decreases of 0.2% for plastic construction products, 0.5% for steel mill products, and 0.4% for gypsum building materials. These figures suggest that the overall construction cost landscape is relatively stable beyond the diesel fuel price surge.

Ongoing Staffing Challenges

While fluctuating costs are a headache, the AGC’s annual workforce survey, conducted in collaboration with Autodesk, highlights an equally critical issue: staffing challenges. An astounding 85% of respondents reported having job openings for hourly skilled craft workers or salaried workers. Within this group of firms, 88% reported difficulty filling skilled craft positions, while 86% reported similar challenges for salaried openings. Furthermore, 61% of firms that experienced project delays attributed them to worker shortages.

Stephen E. Sandherr, the AGC’s chief executive officer, emphasized that the current approach to preparing future workers is failing the high-paying construction sector. Many parts of the country are struggling to find enough skilled workers to meet the increasing demand for construction projects. The survey findings reveal that two-thirds of contractors believe that many candidates lack the necessary skills to be employable in the industry. To address this gap, AGC officials stress the importance of exposing more individuals to construction career opportunities and providing them with the fundamental employment skills required for success.

How a Construction Consultant Can Protect Your Investment

While the construction industry grapples with the challenges of rising material costs and staffing shortages, there are strategic solutions available to help projects stay on time and within budget. One invaluable resource for achieving this goal is partnering with Moran Construction Consultants. Bringing a wealth of industry knowledge, our consultants utilize their years of experience to help project stakeholders make informed decisions that optimize resource allocation and budget management.

Skilled at adapting to changing circumstances in the face of fluctuating costs and labor market dynamics, we can provide recommendations to keep your project on the right track even when external factors threaten to derail it. Interested in learning more about how we can help? Contact us online or call us at 866-545-3350 to learn how our team of consultants can help protect your investment.

The United States’ commercial real estate market is witnessing a dynamic and transformative period, driven by economic growth, innovation, and demographic shifts. As businesses continue to expand and adapt to evolving consumer demands, certain cities stand out as hotspots for commercial real estate investment. Below are a few of the fastest-growing cities for commercial real estate, where opportunities abound for investors, developers, and businesses alike.

 

Austin, Texas

Austin’s meteoric rise as a technology and innovation hub has propelled its commercial real estate market to new heights. With an annual population growth rate of around 3% over the past decade, the city’s vibrant community attracts both startups and established corporations. The demand for office space in Austin increased significantly, with absorption rates of over 2 million square feet in 2020 alone. The city’s tech job market remains robust, contributing to its reputation as a tech mecca. These trends signal Austin as a burgeoning destination for businesses seeking expansion and investors looking to capitalize on the city’s booming commercial real estate sector.

 

Nashville, Tennessee

Nashville has recently emerged as a major commercial real estate powerhouse. The city’s population has grown by an average of 2% per year over the last decade, reflecting its appeal as a destination for both businesses and residents. With over 15 million visitors expected to visit the city in 2023, Nashville’s hospitality industry has experienced remarkable growth, driving the demand for hotels and retail spaces. The job market has expanded across various sectors, including healthcare, entertainment, and finance. These impressive statistics showcase Nashville’s allure as a commercial real estate hotspot and underscore the city’s significance in the U.S. real estate market.

 

Charlotte, North Carolina

As the second-largest banking center in the U.S., Charlotte’s financial sector has been a major driver of the demand for office spaces in the city. Moreover, the investment in infrastructure projects to support its growing economy has enhanced its appeal to investors. Consequently, the city’s population grew at an average rate of 2.5% per year over the last decade, reflecting its attractiveness to professionals and businesses alike. The city’s position as a top destination for commercial real estate opportunities is undeniable.

 

Phoenix, Arizona

With a population growth rate of around 2.5% annually over the last decade, Phoenix attracts businesses seeking affordable office spaces and a growing workforce. The city’s industrial market boom, driven by its advantageous location for distribution and logistics, has been a significant contributor to its commercial real estate growth. With an expanding job market across various industries, including healthcare, manufacturing, and technology, Phoenix offers promising opportunities for commercial real estate investors.

In the up-and-coming commercial real estate markets of Austin, Nashville, Charlotte, and Phoenix, opportunities are abundant, but so are the risks. As investors, developers, and businesses flock to these dynamic cities, the importance of mitigating construction risk becomes paramount. That’s where Moran Consultants steps in as your trusted partner.

How Moran Consultants Can Save You Time and Money with Your Next Investment

Navigating the complexities and unique risks of commercial real estate development and investment demands the utmost expertise and experience. Moran Consultants offers comprehensive services tailored to the unique challenges of each of these booming markets. With the help of our large database of past projects and years of local knowledge, we can complete accurate comparisons regarding project cost, time, and project team experience based on geographic region and specific project type. With Moran Consultants as part of your team, our consultants can offer the insights you need to make informed choices and the peace of mind that your investments are secure. Give us a call at (866)-545-3350 or contact us online to learn how we can help you with your next deal!

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