April Construction Unchanged From Prior Month

New York, N.Y. – May 18, 2011 – New construction starts in April were reported at a seasonally adjusted annual rate of $400.2 billion, basically the same amount as March, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies.  Nonresidential building slipped back after its elevated March pace, while nonbuilding construction (public works and electric utilities) continued to retreat.  In contrast, residential building in April registered a moderate gain, helped by upward movement for multifamily housing.  During the first four months of 2011, total construction on an unadjusted basis came in at $122.1 billion, down 9% from the same period of 2010.

The April data produced a reading of 85 for the Dodge Index (2000=100), unchanged from the revised level for March and also February.  “The pattern of construction starts has been essentially flat within a broad range for about two years now, and the past three months have come in towards the lower end of that range,” stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction.  “There have been a few positive signs in recent months, such as the strengthening trend shown by multifamily housing and the pickup for manufacturing plants.  However, single family housing remains stalled, and the tough fiscal environment continues to dampen the prospects for institutional building and public works, even with the occasional support coming from large projects such as took place during April.  More and more, it’s looking like the best that can be expected this year for the overall level of construction starts is flat activity.”

Nonresidential building in April dropped 2% to $160.2 billion (annual rate), down slightly after the 26% gain reported for March.  Much of April’s decreased contracting came from the commercial and industrial structure types, which had been boosted in March by the start of several very large projects.  Office construction in April dropped 55%, after being lifted in March by the start of a $1.1 billion data center for the National Security Agency in Utah.  While down substantially, the office category in April did include the start of a $126 million corporate headquarters in Akron OH as well as the $125 million office portion of the $420 million City Center mixed use project in Washington DC.  The manufacturing plant category in April was also down substantially, falling 59% from March which included the start of a $900 million semiconductor plant in Oregon.  Both stores and warehouses posted large April declines, sliding 22% and 30%, respectively.  Running counter to the generally downward trend for commercial building in April was hotel construction, which jumped 91%.  Large hotel projects that reached groundbreaking in April included a $127 million hotel in New York NY and a $108 million hotel in Bloomington MN.

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Is your lobby in need of a facelift?

First impressions really do count when it comes to lobbies. If your lobby looks tired and dated, it’s well worth your time and money to schedule upgrades. Whether you restore or renovate, enhancing your lobby lets you lead with your best foot forward.

Business 101

Much like a professional wardrobe, a lobby is a personal reflection of your business philosophy, says Mark Stumer, principal of Mojo Stumer Associates. A charismatic and attractive lobby isn’t just about aesthetics. If clients are distracted by a poorly maintained space, they may not take your business seriously.

“Your lobby is your front door – it’s the first and last impression for your employees, tenants, and their customers,” explains Charles McClafferty, chief operating officer with Sage Realty Corporation in New York City.

Lobbies are an area to develop an edge over similar buildings in your location or within your industry. The increased visibility from a strong lobby can result in:

• Competitive rents
• High-profile clients
• Longer-lasting tenants
• Increased pride of ownership
• Improved building value

If you have trouble filling vacancies or suffer from low leasing rates, evaluate the condition of your lobby. “A few years ago, you could afford for your lobby to appeal to a niche market. In this economy, you need to cast your net wider,” says McClafferty. “The decision to renovate your lobby must be market-driven. You need to be aware of what your competition is doing and what is attractive to your tenants and their customers.”

Modernizing your lobby is a sound long-term investment. A solid lobby can last for 30-40 years, all the while securing good tenants and accompanying rents. While a gut job is rare, a refresh can be as simple as a few updates or as extensive as an entire remodel. “Whether you decide to restore or renovate is 100% the product of your budget,” says Scott Spector, principal for the design firm Spector Group.

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DOE releases guide for 50% more energy-efficient office buildings

The U.S. Department of Energy today announced the release of the first in a new series of Advanced Energy Design Guides (AEDGs) to aid architects and engineers in the design of highly energy-efficient office buildings. The 50% AEDG series will provide a practical approach to commercial buildings designed to achieve 50% energy savings compared to the commercial building energy code used in many areas of the country. This 50% AEDG for Small and Medium Office Buildings is the first in a series of four to be released in the coming months. These commercial building guides support President Obama’s goal to reduce energy use in commercial buildings 20% by 2020 and will help drive demand for energy-saving products made in the United States.

Not only will these guides help builders achieve performance beyond the current energy code, but they will also provide recommendations detailing how designers can incorporate available technology to achieve these savings. The guides help architects and engineers choose energy-efficient designs for daylighting, building envelope assemblies, and heating and cooling systems, among other technologies. The guides also recommend equipment commonly available from manufacturers and reduce the time and cost burdens otherwise required in order for designers to individually model energy use for specific high performance buildings. Additionally, the guides will inform the development of future commercial building energy codes.

The Advanced Energy Design Guide for 50% energy savings in Small and Medium Office Buildings is now available for free download.

The 50% Advanced Energy Design Guide series is being developed through a partnership with the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), American Institute of Architects (AIA), U.S. Green Building Council (USGBC), and Illuminating Engineering Society of North America (IESNA). The Small and Medium Office guide is the first installment in the 50% Series, which will address three additional major commercial building types: K-12 Schools, Medium to Big Box Retail Buildings, and Large Hospitals.

Read more at Building Design + Construction »