Keys to success when managing the development of commercial real estate projects from a labor perspective.
In the following podcast interview, Ross Litkenhous, a Senior Director with Altus Group, interviews Maury Stern, a Partner with Insight Property Group, and Mike Smith, a Project Executive at John Moriarty & Associates, about the keys to success when managing the development of commercial real estate projects from a labor perspective.
As more apartment projects come online, there has been a shortage of quality general contractors due to an increased demand for labor. As a result, construction deficiencies are becoming more common, many requiring capital improvements after delivery to mitigate emerging issues, such as with plumbing and electrical.
One of the key components for success is developing sound relationships with general contractors and subs, as well as implementing a thorough plan in advance that addresses construction issues.
The following podcast addresses these challenges with examples from the Washington D.C. market, and provides guidance on mitigating risk. Here are the key highlights:
- Insights about how Insight Property Group tackled this challenge with the development of The Apollo apartment building in Washington, D.C. (1:24)
- Why strong relationships with general contractors is fundamental for success. (3:06)
- How general contractors can organize and find the best subcontractors in a market with a high-level of demand. (4:06)
- Where the risky trades often exist with regards to labor when starting a new project. (7:05)
- How gaps in labor have impacted the underwriting of deals, and how this has changed over the past five to 10 years. (9:11)
- How the best general contractors help developers by providing the most sound price estimates and timelines to ensure long-term success. (12:23)
- How the current commercial real estate marketplace is potentially mirroring the pre-recession era of 2007, before the residential market collapsed. (15:25)
- Lessons learned from the construction of The Apollo. (17:45)
- How past experiences will help Insight Property Group deliver the best Broad and Washington project in Falls Church. (20:45)
This podcast is part of the CRE Insider Podcast Series hosted by Ross Litkenhous.