Is the commercial real estate crash still waiting to happen, or did the market escape the same fate its residential counterpart succumbed to?  According to Fortune, there are two opposing fields of thought that have answers to this question.  The Congressional Oversight Panel still predicted a crash that would cause a "downward spiral of economic contraction," but many commercial investors believe otherwise. 

Investors in the commercial market predict that the market will in fact hit a bottom, but that a crash is not inevitable.  Rather, a peristant effort to work through the commercial real estate sector's rough areas will eventually see it through to a stabler market.  Some investors have followed a trend of buying back their debt and restructuring it, while other portfolios are being auctioned off at a portion of the value.  This breathes a little more life into these properties, allowing for more flexibility on loans.

This slight optimism is echoed in the Real Estate Roundtable's Second Quarter Sentiment Index.  Though the majority of the senior executives surveyed think the current market is an improvement on last year's conditions, they are still wary about the future, citing the need for available equity and more jobs creation.

December 15-17, 2010 | The Palace Hotel | San Francisco, Calif.
 

The 25th Annual Construction SuperConference will bring to the forefront new insights into the legal, business and economic challenges and opportunities in today's construction industry.  The agenda features panel discussions comprised of some of the top legal, consulting and construction experts who will delve deep into some of the most challenging issues with sharp insight and practical solutions.  All participants will walk away with invaluable information and resources that will assist them in meeting today's challenges.

AGC Members receive a 15% discount.  Early Bird registration ends September 10.  Use Code- A2G3C3 at https://secure2.rhq.com/vendome/csc10/attreg/index.cgi?source=AGC.

For more information or questions, please contact Carrie Ciliberto at cilibertoc@agc.org or 703-837-5367.

According to Bloomberg, 2010's first quarter saw an overall decline in commercial property values.  Though the general economy expanded slightly during this period and property sales increased, many commercial sectors did not fare well.  Office vacancies grew by 17 percent, and rents dropped by almost 1 percent.  Apartment and industrial real estate values rose in the first quarter, but overall the Moody's/REAL Commercial Property Prince Index fell .5 percent in March, down 25 percent from the previous year.

For the complete analysis from Bloomberg, please click here.

According to the Wall Street Journal, the government's new Lead Renovation, Repair, and Paint Program (covered by AGC's Environmental Observer) could add a significant cost burden to the already weakened construction industry.  The cost of employee certification, as well as new equipment, clothing, and other safety materials could be a hefty expense for many small businesses.  These businesses will have a tough time justifying increased costs to property owners, who are already investing less in home renovations. 

On the other hand, there is the possibility that increased awareness of the harmful effects of lead will increase business for renovation companies.  The Home Star Energy Retrofit Act, if passed by the Senate, would offer incentives to homeowners who make their homes more energy-efficient. Small businesses hope that the incentive to renovate, coupled with lead aweness, will encourage more renovation investment.

For the complete article, please click here.

The U.S. Environmental Protection Agency's (EPA) Lead Renovation, Repair, and Painting Program (RRP) rule was fully implemented on April 22, 2010.  Adding to the already complex regulatory regime, EPA has just taken three new actions that widen the rule's potential impact on the construction industry.  Most notably, EPA is also exploring whether or not to impose the RRP requirements to the exteriors - and possibly even the interiors - of all public and commercial buildings. 

AGC has distributed news articles that explain the legal requirements and a contractor's responsibilities under EPA's RRP rule, and has more information on the EPA's most recent actions here.  AGC urges construction professionals to remain aware of these changing standards and take appropriate action to assure compliance with all lead-based paint rules.  AGC will continue to monitor and report on any new developments in AGC's Environmental Observer online at http://newsletters.agc.org/environment.

For more information, please contact Leah Pilconis at (703) 837-5332 or pilconisl@agc.org.

July 14-16, 2010 | Cincinnati, OH
 

Construction safety and health is vital for the success of the industry. Join more than 150 industry professionals and participate in the development of regulatory and legislative activity on both a national and local level, assist in the development and creation of new safety training programs and products and hear the latest initiatives from OSHA and other industry experts.

• The latest updates to regulations and OSHA activities
• Get the latest updates on congressional activities directly affecting construction safety and health.
• Participate on subcommittee and taskforce meetings on government, education and performance. 
• Take an active role in improving safety and health in the construction industry.

Don't miss the July 15th Evening Reception at the Newport Aquarium hosted by AGC of Ohio Divisions.  All aquarium exhibits will be open for this exclusive event and food and beverages will be available. The Reception starts at 6:00 pm and ends at 9:30 pm. Transportation to and from the hotel will be provided.

Please follow the link below for registration and more details: http://www.agc.org/cs/event_details?eventId=1946.