As the pandemic eases, construction costs are rising across the commercial sector. There are several uncharted factors impacting these market forces. However, even with the increases, demand is expected to rise as retail, offices, medical facilities, industrial properties, and multifamily businesses re-enter sectors of the economy they have put off during the last eighteen months.

Commercial real estate inventory, demand, cost of building materials, supply chain disruptions, interest rates, labor shortages, and the pandemic are heavy influences of current pricing trends. Federal infrastructure spending in the near future is expected to squeeze resources further. You may continue to see construction costs rise or at the very least remain unstable for the next year or two.

Let’s just look at one building material – lumber – perhaps the single most important building supply. Since the start of the pandemic the price of lumber has fluctuated greatly. The unit price for a thousand board feet of lumber reached a low of $258 in April 2020, and then staggered its way to a record high of $1670 in May 2021. This was an increase of nearly 650%. It fell steadily since then to the mid-$400s in August 2021, but climbed to over $600 in September. Many analysts put the price in the pre-pandemic range of $350 in the months ahead, but it is really anyone’s guess.

Other costs have risen substantially in year-over-year comparisons based on the producer price index (PPI) for new nonresidential building construction. These are the year-over-year percentage rate increases for common building materials:

Despite increases in material costs, orders are rising. As material costs reach double digits, the costs for new construction are still tempered with moderate single digit increases. Here are the PPI increases for new buildings:

These increases impact construction costs, but more importantly, the volatility is changing the construction bidding process. Bid prices are guaranteed for much shorter time periods, requiring quicker decision making. This is expected to continue as long as the price of materials continues to fluctuate unpredictably.

Scheduling also becomes challenging. The bid process may require shorter lead times, while material back-orders extend schedules. Pre-ordering and securing construction materials may become necessary to meet deadlines.

Building supply costs are just one price consideration in the overall cost of construction. Another refrain from construction companies is the shortage of skilled and unskilled labor. As unemployment benefits begin to run out, the labor supply is expected to increase. While this may have some impact, wages are also expected to increase as the labor supply struggles to meet demand.

The pandemic has also impacted the labor market in extraordinary ways. Health and safety rules have limited the number of people allowed on a job site or within a confined work area. Work reductions in government offices have slowed the rate of inspections and permit approvals.

Interest rates have remained the one constant. And while historically low rates will eventually rise, they are expected to do so at a slow rate. However, commercial financing and construction loans are not just based on interest rates. In recent years the architecture of these loans has changed significantly from long-term lending to shorter bridge loans throughout various phases of a project.

As construction booms and resources tighten, smaller projects may get pushed aside by large construction companies. Finding a smaller, yet experienced company may be the right answer for many. Omnia Pacific Construction, a Los Angeles based company specializing in retail and commercial projects, is seeing an uptick in small and mid-level construction. Space conversion, remodeling, and ADA remediation are popular requests.

Another area growing in popularity is space demising. As commercial properties evolve, many larger spaces are looking to demise rooms into smaller, multiple rental units. These projects are perfect for a small construction company, as they require industry experience and expertise but are often too small for the bigger firms.

It is clear that commercial construction is entering a new phase. As labor and supply resources tighten in the months ahead, finding the right construction resources might be essential to complete your project in a timely and cost-effective manner. Tapping into new sources might pleasantly surprise you with the best possible outcome.

Sources:

Construction Material Costs Overall Continue Rise, While Lumber Drops; Floor Daily
https://www.floordaily.net/flooring-news/construction-material-costs-overall-continue-rise-while-lumber-drops

Material Cost Escalation, Delays and COVID-19: Managing Risk in Challenging Times; JD Supra
https://www.jdsupra.com/legalnews/material-cost-escalation-delays-and-3911119

Covid to Impact Construction Claims Until at Least 2023; Pinsent Masons
https://www.pinsentmasons.com/out-law/analysis/covid-impact-construction-claims-2023

The construction of linen chutes for commercial use is a modern necessity for an operation such as a senior living facility, hotel, hospitality business, multifamily high-rise, or industrial facility. These convenient conduits can be installed inside internal building shafts or as external structures. While relatively simple in design they feature several elements that require construction expertise.

Placing linen chute access points on upper floors allow for the easy transport of dirty laundry down to a central location, often directly into the laundry facility. Dirty and odorous linen can avoid elevators and other common areas. This also prevents potential injury from moving heavy laundry down long hallways or stairs.

Linen chutes are classified as gravity chutes because they are non-mechanical, relying on basic physics to move the load to a lower floor. The main vertical chute is either round or rectangular, traversing several floors.

Building codes and compliance are the top considerations for new laundry chute construction. Proper installation demands mechanisms are in place for the safety of the building and its occupants.

The National Fire Protection Association (NFPA) has strict guidelines about linen chute equipment. The governing codes in NFPA 82 include section 11.2.2, which states “Waste and linen chutes and transport systems including chute intake and discharge doors, shall be inspected and maintained not less than annually in accordance with manufacturers’ instructions.”

Fire suppression devices are important features as fire can travel and spread quickly through open conduits such as chutes. The first safety device is a sliding closure at the bottom level. Normally in the open position, it is held in place by a pin assembly that discharges under high heat. This automatically closes the shaft to prevent air, smoke, and fire from spreading rapidly if the laundry room is the point of origin.

Laundry chutes are accessed at each upper floor through hinged metal doors. These doors are typically fire-rated at 90-120 minutes, depending on local codes. They may have other fire suppression features, such as sprinklers at each floor level.

Chutes also have child-safe latches to prevent accidental opening. Doors are self-closing and openings are commonly limited to 18”. All door heights and hardware must be ADA compliant.

Clearly the maintenance and inspection of linen chute systems are important. If you have maintenance questions, repair needs, or concerns about compliance inspections, a good place to start is your facility services team. They may provide this service or can refer you to a reliable source.

Regular cleaning of linen chutes is also essential to maintain hygiene and a good working condition. Even if your system has an internal self-cleaning function, the exterior doors, hardware, and hopper require supplemental cleaning to stop contamination and prevent corrosion.

Linen chutes may appear similar to ventilation shafts but they are typically made of a thicker gauge sheet metal to withstand the weight of heavy linen, which may also be wet. There are other structural elements to account for the heavy load, such as deceleration tracks, braces, and reinforcement at impact points.

Constructed of stainless steel or aluminized steel, long shafts are welded together. The interiors are smooth and fitted to prevent damage to falling linen. Noise dampeners are also employed to reduce banging and ringing sounds. Rooftop exhaust ports are also essential.

While basic in appearance, there are many components that require professional expertise in the construction, custom fabrication, and installation of linen chutes. Incorporating them into existing facilities demands knowledge of commercial construction methods and practices.

Linen chute manufacturers may offer installation but can be unfamiliar with building construction challenges. Chute projects often fall below the minimum threshold required to interest a large construction company. Therefore, the ideal sweet spot for linen chute installation is a small construction company with the industry expertise and flexibility to meet your needs.

A company such as Omnia Pacific Construction is ideally suited to install your linen chute system in California. With decades of experience in the commercial space, they have worked with assisted living facilities, multifamily apartments, hotels, and industrial warehouses to bring convenient and cost-effective upgrades to their facilities. Call 800-974-4515 today to find out what they can do for your property.

While there are always shifts and trends in the commercial property market, they usually happen gradually. Many predict that the retail and commercial real estate markets are on the verge of their most disruptive transitions in recent memory. Questions still linger as to which direction these retail conversions, shopping center makeovers, and office conversions will take.

The ascent of e-commerce shopping and shifts in consumer shopping habits were occurring for more than a decade. The pandemic forced rapid widespread acceptance of online shopping for millions who may have otherwise taken years to adapt, if at all. It is too early to tell if these unnatural shifts in habits will continue in the long run.

Subsequently, the boom in e-commerce led to a near immediate demand for last mile distribution centers. Big box retailers with large spaces, empty stores, and vacant parking lots were an easy match to fill the need. Some converted to mini-distribution centers almost overnight.

The conversion of retail shopping centers had begun long before the pandemic. The descent of former powerhouse retailers such as Sears and JC Penney signaled a decline in brick-and-mortar retail and prompted industry speculation about other uses for these large spaces. Indoor shopping malls also waned and were joined into the conversation.

The requirements for last-mile distribution centers are much in line with those of retail stores. The proximity to population centers, transportation corridors, and large open spaces make them compatible conversions.

Some indoor shopping mall spaces are being converted into high-end, creative office spaces. The open floorplan of tech work environments and the rise of co-work offices have opened the door for many of these types of conversions.

Vacant office spaces are also being converted into co-workspaces to meet the demands of shifting work habits. With many office jobs shifting to remote or hybrid roles, the demand for individual office space is expected to decline dramatically. Shared workspaces and short-term office rentals may be viable solutions for underutilized office buildings.

The demand for medical offices is also on the rise. Depending on the practice and on-site services provided, these are conversions that can work well for strip malls, shopping centers, and office buildings.

One of the reasons for the wide range of medical facility conversions is that the category covers a variety of business types. Medical specialists, dental offices, lab services, physical therapy, urgent care centers, and even veterinary care are the types of businesses that have taken up occupancy in converted spaces.

While these are the typical conversions taking place in retail and office spaces, other transformations are also reshaping the commercial landscape. Concert venues, childcare centers, food halls, and experiential retail have all moved into converted spaces.

Historic architecture has found new life as multifamily and mixed-use properties. Developers have also seen that blending residential with retail has proven to be very successful, finding cross-over compatibility, especially with high-end, open-air environments.

Besides their proximity to large population centers, retail spaces have other characteristics that make them suitable for conversion. They generally have ample parking and the buildings are structurally capable of conversion, which makes them efficient to transform to other uses.

Converting an unused space to a business that benefits the community will generally garner public support. Repurposing is also environmentally friendly. Construction costs and build time are significantly lower for conversions versus starting from the ground up.

As the commercial landscape shifts, retail, office, and other commercial spaces will need to consider these types of solutions for maintaining occupancy into the future.

Source: Omnia Pacific Construction, a division of CAM Property Services, is a construction company that specializes in revitalizing retail and commercial centers throughout Southern California.

In recent years, the popularity of electric bikes and electric scooters has grown exponentially, with more and more people opting for these convenient and eco-friendly modes of transportation. And it’s easy to see why — they offer a range of benefits, from reduced emissions to decreased travel time and increased affordability. As a result, they’re quickly becoming the transportation mode of choice for city dwellers and urban commuters, cementing them as a staple of modern life.

There is a catch, however. As with many lithium-ion battery products, e-bikes run the risk of catching fire or even exploding. The U.S. Consumer Product Safety Commission received reports of at least 208 micro-mobility fire or overheating incidents between January 2021 and November 2022.

So it’s clear that there’s some risk involved — a direct consequence of which is the recent rise in insurance costs for multifamily property owners. This has led to the outright ban of electronic bikes and scooters by many landlords, who would rather avoid the potential risk altogether.

But what if there’s a way to ensure your building can offer this vital amenity to would-be renters and residents for safely storing and charging their e-bikes without the worry of fires? Enter CAM Property Services. Our Property Pros can help protect your multifamily property and its residents from lithium-ion battery fires in one of two ways:

• We can retrofit your property to better defend against fires
• Or we can design a custom e-bike/e-scooter storage facility to house them safely

Let’s take a closer look at each service:

Retrofitting Your Property

Fire safety begins with ensuring that your building has the ability to prevent the spread of fires. This is where CAM’s construction company, Omnia Pacific, comes in. Retrofitting comes in two forms: encapsulating existing space and upgrading existing fire systems.

Omnia Pacific can encapsulate an existing bike storage area with cinder block, install e-charging hookups for e-bikes and e-scooters, and retrofit all fire suppression systems to ensure the building is fully compliant with all fire safety codes and regulations.

We offer a range of fire suppression systems, including fire sprinklers and fire alarms, which can be installed to ensure that your building is equipped to handle any potential fire outbreaks. This includes fire-resistant features such as doors, walls, and windows, which can significantly slow down the spread of fire. Our goal is to protect your property and residents while providing an important amenity in today’s modern world.

Building a Safe Storage Space

Omnia Pacific can create custom-built e-bike storage areas that prioritize safety and security. Our expert team utilizes fire-resistant materials such as concrete, steel, and brick, to ensure that your e-bike storage area is well-equipped to handle any potential fire outbreak. We also install top-of-the-line fire suppression systems, including fire sprinklers and smoke detectors, to provide an added layer of protection for your property.

In addition to using fire-resistant materials and fire suppression systems, our team pays close attention to ventilation and space when designing e-bike storage areas. Proper ventilation is critical in preventing the accumulation of combustible materials that can contribute to the spread of fire. Our team ensures that there is adequate space within the e-bike storage area to prevent clutter and maintain a safe environment. With CAM and Omnia Pacific, you can advertise and trust that your e-bike storage area is not only a secure and convenient amenity but also designed with safety as a top priority.

To learn more about how CAM can help, call (800) 576-3050 today.

Navigating the clean-up process after wildfires and mudslides

The wildfires in Pacific Palisades, Malibu, and Altadena — compounded by devastating mudslides — have left property owners and managers facing a challenging recovery. As outlined by Los Angeles County, the clean-up process is divided into two distinct phases:

Phase 1 involves hazardous debris removal, which property owners do not need to sign up for. However, your property must pass an EPA inspection before moving to Phase 2.

Phase 2 involves the removal of remaining fire debris. Property owners can opt for  government-sponsored clean-up programs or hire a private contractor — such as CAM Property Services — for more specialized assistance.

As a trusted partner in Southern California, CAM Property Services is fully equipped to manage fire debris removal. We can provide our clients with:

• License and insurance. Do business with a contractor that is licensed by the state of California and can safeguard you against further liabilities.
• Expertise in regulatory compliance: We navigate complex regulations to ensure your property meets all required standards.
• Tailored clean-up plans: Every property is unique, and we offer customized solutions for the fastest, most efficient recovery.
• Personalized service: We take the time to understand your needs, offering hands-on support throughout the process.

For a smooth, compliant clean-up, contact the Property Pros today.

Recalibrating Property Management for Environment, Health, and Safety with CAM Property Services

Weathering the COVID-19 storm with an EHS Specialist

Amidst the uncertainties that surround the coronavirus (COVID-19) outbreak, an opportunity presents itself as a solution for future growth – recalibrating existing business models to ensure environmental, health, and safety (EHS) concerns have a seat in the decision-making process.

Rather than relying on business-as-usual solutions, real estate leaders are now looking to environmentalists, sociologists, and futurists for answers.

• Will the demand for space increase post COVID-19?
• Will people have a fear of riding elevators?
• Do you have the resources to keep up with the ever-evolving EHS arena?

As evident in the financial crisis of 2008, while some assets survive through adaptation, others fade. Acting quickly, decisively, and consistently will not only determine the fate of the players but also the industry after it eventually reinvents itself.

The smartest players are now thinking about how their respective industries will change and are altering their strategy accordingly. Here is how EHS should be a part of your new normal strategy:

• Technical Know-How: Understand the technicalities of science-based solutions
• Industry Expertise: Evaluate the bigger picture to identify maximum impact solutions
• Tactical Revenue Strategies: Optimize business functionality

Moreover, this goes beyond adapting. Implementing preventative measures will be bold steps to deepening your relationship with employees, customers, investors, and other stakeholders.

Here at CAM Property Services, we know what you do next matters. We have been focused on how we can adapt our diverse array of property management services, EHS subject matter expertise, and technology – to best support our existing and new clients in moving forward successfully.

Our holistic approach, CONFIDENCE+, is designed to maximize operations engagement, with an eye toward your bottom line, at a time when it is most imperative.

By focusing on the latest and safest EHS guidelines, applying the fundamentals of cleaning and evaluating assets from a social science perspective, we utilize our broad service capabilities, providing strategies that focus on increasing revenue and productivity while mitigating risk.

Be assured that the CAM Property Services team is here to support your business during these challenging times. If you want to ensure your property is a sanitized space and implement EHS within your business, please reach out to us so that we can help you pave the path forward to the next normal.

About The Author: Pranav Heryani is an EHS & Sustainability Specialist. Among the next generation of environmental professionals, his projects have encompassed both local and international efforts toward green initiatives with practical sustainability for the commercial sector.

As customers re-enter public buildings in greater numbers, we need to ensure that they are comfortable in urban spaces and allowed to move about safely. Innovative solutions are crucial to support the well-being of customers.

Our responsibility to property managers is to ensure their assets are pandemic resilient while simultaneously delivering positive impacts on business operations, thus factoring in Environmental Health & Safety (EHS) in decision-making. Our cost-effective strategies are focused on increasing revenue, improving productivity and mitigating risk at a time when it has never been more imperative.

Businesses across California are getting back into shape, proactive landlords and property managers are creating designated safe shopping zones while working collaboratively with us at CAM Property Services. We are constantly updating our service offerings with the latest and safest technologies.

It was not long ago that hardly anyone gave a second thought entering the bustling lobby of a large building or stepping on an escalator. Today, our world has changed, and the way businesses and consumers interact with commercial spaces has been altered. Building owners are making public safety a top concern, establishing safeguards for people to move through buildings with confidence.

For example, escalators are indispensable to today’s urban lifestyle, commonly found in places such as shopping centers, theaters, sports arenas, transit stations, and airports. They are used and touched daily by scores of customers to prevent accidental falls. Unfortunately, worn and gouged rubber escalator handrails can host bacteria and viruses, thus posing a direct threat to human health. It has become common that escalator riders are using handrails progressively less, which has posed increased risks and liabilities.

“If you don’t think the handrail is clean, you don’t want to hold it. Not holding the escalator handrail, however, is not a great option as it increases the risk of injury from loss of balance” says Hanna Inget, head of new services and solutions at KONE, an escalator and elevator provider.

People aren’t the only passengers on escalators. Handrails are often an express lane for germs due to constant contact with unclean hands. Researchers have found traces of blood, mucus, urine, and feces on handrails, not to mention harmful bacteria and viruses. Cleaning escalator handrails has been an ineffective and time-consuming process, until now.

CAM Property Services has added an innovative new escalator handrail disinfection technology to their facility services. It renews and disinfects escalator handrails, providing increased safety and peace of mind for customers who typically hold handrails for balance. The process requires no additional power source, no escalator downtime, and can expertly clean and condition the dirtiest of escalator handrails.

The handrail cleaning system is a non-motorized, safe and simple system to remove dirt, bacteria, and 99.9% of pathogens from moving handrails. A patented cleaning formula is applied to microfiber pads, proven effective in independent studies, attached to molded pad holders on a mobile dolly system, which cleans the moving handrails from “bead to bead” without interrupting operations.

The cleaning and conditioning solutions are biodegradable and have been developed over years.

A mix of silicones helps restore and even protect the rubberized handrail material, extending its useful lifespan. The engineered design uses the power of the escalator to facilitate the cleaning action as it restores and disinfects one rail at a time.

As we ease out of lockdown and re-enter public urban buildings, such as shopping centers, we need to feel comfortable in populated settings. From disinfecting handrails to people flow planning, innovative solutions will not only support well-being but allow your property to adapt and thrive in this new era where EHS is at the forefront.

At CAM Property Services we continue to find new ways to support our clients and their customers. Our suite of anti-virus property management services includes electrostatic fogging, aerial drone inspections, customized plexiglass barriers, and visual cues.

CAM Property Services is adapting holistic and analytical approaches to facility management and cleaning standards. Combining our diverse array of property management services, EHS subject matter expertise and observational methodologies, we are able to yield highly targeted science-based solutions for any asset class with the industry’s best services.

About The Author: Pranav Heryani is an EHS & Sustainability Specialist. Among the next generation of environmental professionals, his projects have encompassed both local and international efforts toward green initiatives with practical sustainability for the commercial sector.