Rising development costs in American cities

It is getting more and more expensive to build new developments in American cities:

Land costs in the urban cores have dramatically escalated, making it difficult for developers to find developable parcels that pencil. Adding to the issue of expensive land prices, in December 2014, the Wall Street Journal reported that construction costs are rising faster than the inflation rate: the U.S. Labor Department’s consumer price index had risen only 1.3 percent above the previous year, while the construction index was higher by 5.2 percent.

Land is scarce and expensive

In most major U.S. urban markets, the cost of land has risen aggressively, in line with the greater demand for urban living by millennials and empty nesters. In Los Angeles, for example, land for industrial developments—many of which are changing from industrial use to residential mixed-use—have averaged approximately $23 per sq. ft. at the beginning of 2014 and  by year‘s end, asking prices were as high as $32 per sq. ft. There has been and continues to be keen competition for every developable site, with the urban core expanding into previously blighted areas.

Current shortage of construction professionals and skilled labor

Construction employment was disproportionately affected by the recession. As a result, many construction professionals—both labor and management—left the industry. Across the country, there are 1.4 million fewer people employed in construction than there were at the peak in 2007, according to the U.S. Bureau of Labor Statistics. Many in the construction industry who lost their jobs during the recession have found new careers, and many skilled tradesmen left the industry all together. Compounding the shortage is the lack of high-quality training available to young people entering the construction workforce today…

Materials costs have little impact

Countering some of the rise in construction costs is the fact that most materials costs, apart from glass, have not greatly increased. Associated Builders and Contractors Inc. reported in April 2015 that, although concrete products prices are up 4.1 percent on a yearly basis, total input prices have fallen by 3.6 percent since the same time last year. For example, iron and steel prices are down 11.5 percent and softwood lumber prices are 7.4 percent lower than one year ago. Current crude petroleum prices are down 55 percent and crude energy materials prices are down by 43.7 percent from the same time last year.

If this is the case, this could have negative consequences in a number of areas including: it might take more to get the construction industry going to overcome these costs; this limits the incentives for developers to construct cheaper or affordable housing (such as starter homes); and only the really wealthy can purchase and utilize urban land.

Architects on how they save money when building their own homes

Here are three money-saving tips architects use when constructing their own homes:

1. Prioritize—Duh.

“We worked really hard to get to the essence of what was important to us,” Jeff Stern, from Portland-based firm In Situ Architecture, tells WSJ, “rather than starting the process wanting it all and having to compromise.” For Stern, splurging on super energy-efficient triple-glazed windows meant incorporating a mix of budget-friendly solutions like concrete floors, fir cabinetry, and plastic laminate countertops.

Thomas Gluck of NYC-based firm Gluck + Architecture gave the exterior of his Tower House a tinted-glass treatment usually only used for commercial projects. “Even though the glass itself is inexpensive, the technique of applying the tint can be costly,” WSJ’s Nancy Keates writes. Still, this was a calculated risk that’s central to the design of the home; the dark glass exterior allows the structure to blend in with its woodsy surroundings. Inside the home, he kept the design and finishings simple…

2. Find off-price steals—it’s like bargain-hunting at T.J.Maxx but for building supplies.

According to David Wagner of Minneapolis-based firm Sala Architects, considerable savings can come from purchasing materials that are discounted for negligible imperfections. For example, the white-oak flooring he used for an 1,000-square-foot addition to his house was a few grades lower than what most clients demand, but he knew that “the flaws were just some ‘character knots’ in the wood.”

3. Think ahead—anticipate how design decisions will affect labor cost.

For his ultra-modern T-shaped home, architect Marc Manack from Silo AR+D in Fayetteville, Arkansas “made the infrastructure as easy as possible for contractors” by grouping utility hookups and connections together in an easily-accessible location. And because Manack did not plan for any “ornate millwork” or “high-end finishes” in his design, he was also able to reduce labor costs by hiring rough-in carpenters instead of more expensive, highly-skilled carpenters.

This helps get at two questions I’ve had about architects, builders, designers, and others that help people build and design homes:

1. Do they give their clients all the options like the cheaper ones they might use themselves? Or, do they look at the money available and present fewer options at each design decision point? Presumably, some clients only want the nicer/perfect items or labor but others might not. I suppose this might be something to negotiate or know in the beginning. Plus, we probably have different expectations: a builder, especially one who constructs large numbers of housing might have lower levels of quality compared to an architect.

2. Do the professional’s tastes actually align with what they design or recommend for clients? On one hand, authenticity is a big deal in the creative arts. On the other hand, the professional needs to have some flexibility in designing things that aren’t exactly what they would choose themselves. Again, this might be clear in the hiring and design process in the beginning.

Where are the ubiquitous Chicago pothole stories?

As we emerge from winter, I thought today that I haven’t seen many pothole stories in the Chicago media. These are typically a staple of news coverage – see examples here and here. Here are some reasons why there may not have been so many stories this year:

1. The communities in the Chicago region did such a fine job filling potholes in recent years that the problem wasn’t so bad this year. This could be true; there are ways to address potholes that solve the problems for the longer term. Yet, the problems were acute in recent years and it sounded like municipalities were trying to fix things as quickly as possible plus there were added costs with salt supplies.

2. Other concerns have dominated the news. Perhaps it was the cold weather and snow cover. Perhaps the transportation news was dominated by future construction on areas like the Jane Byrne Interchange, I-90, and the proposed Illiana Expressway.

3. The weather has been so cold that potholes haven’t really formed yet since the roads were not thawing and freezing. Perhaps the potholes will really start emerging this week.

4. Perhaps I missed all the pothole stories?

Building a 2,100 foot bridge while it carries 80,000 vehicles a day

Drivers tend to complain about highway construction but it can be quite complex, particularly when a long span and lots of cars are involved:

Bridges are particularly challenging because they require intricate, and potentially dangerous, work to be done while cars whiz past below, officials said.

Think about those girders, for instance. Work crews use two cranes to lift each girder into the air and then lower it onto the frame of the bridge. The cranes don’t release the girder until it has been bolted into place, officials said.

After the girders are in place, protective plywood shielding is installed between them. The shielding supports workers as they pour the concrete “floor” of the bridge.

The whole process requires only short, intermittent lane closures, Lafleur said.

“We do most of the work overnight to keep traffic interruption at a minimum,” she said. “But of course, night work presents its own challenges, with lighting and visibility especially.”

The average driver won’t even think about any of this when making their way over the bridge. But, if the predictions in the article are correct, they will enjoy the 35% reduction in travel time through the area.

Chicago Lucas museum to have to deal with garbage underneath

Chicago may have a beautiful waterfront but plans for the Lucas museum provide a reminder of how that land was acquired: garbage.

“Any design will account for existing environmental issues and be built accordingly,” an Emanuel spokesman said. “The mayor has been clear. No public dollars will be spent on construction of the Lucas museum.”With Emanuel’s backing, Lucas is proposing a five-acre museum nestled on 17 acres of Chicago parkland just south of Soldier Field. But what’s buried below the surface of the site is nasty stuff. An analysis for the renovation of Soldier Field and the land around it more than a decade ago found potentially cancer-causing chemicals in the soil near the stadium, according to a site inspection report filed with the Illinois Environmental Protection Agency…

The contamination discovered around Soldier Field is believed to be the byproduct of burning wood, coal and other materials. Embankments, parking lots and other paved surfaces around the stadium serve as barriers eliminating human exposure to the buried pollutants. Plans call for some of that area to be dug up as Lucas proposes moving 3,000 parking spaces underground. The project’s proximity to Lake Michigan also is a factor for environmental planning.

I remember seeing a small exhibit of some of this garbage at the Field Museum about 10 years ago. On a small plot just outside their building they had found a wide range of items including utensils and tea cups and saucers from hotels.

Since there are environmental concerns at this particular site, I wonder how close residents and visitors are to these dangerous materials at other points along the lakefront. Just how deep would one have to dig to find the garbage? How much work does it take to contain the problems when constructing new buildings?

Chicago to get its own “Carmageddon” on the Kennedy in June

Major repair work on the Kennedy in June is being dubbed Chicago’s own Carmageddon:

Chicago-area drivers are being urged to steer clear of the downtown stretch of the Kennedy Expressway during the last three weekends in June, officials said Thursday. That’s when bridge demolition on the Kennedy interchange at Ohio and Ontario streets will require shutting down expressway lanes, first in the inbound direction, then outbound and finally the Ohio and Ontario feeder ramps…

Officials hope the stern warning will help prevent hourslong snarls along the expressway that carries an average of 260,000 vehicles a day, avoiding what some traffic engineers have referred to a “carmageddon.”…

The work to tear down sections of the bridge, drop the concrete pieces onto the Kennedy and haul away the debris is scheduled for a series of tightly choreographed 55-hour periods on the weekends of June 13-15, June 20-22 and June 27-29, according to IDOT plans…

On an average project, IDOT tries to “scare away’’ 15 percent of the traffic to compensate for lane closures, officials said. During the Kennedy work, they hope to divert about 25 percent of traffic elsewhere.

There are echoes here of the Carmageddon in Los Angeles several years ago that ended up working out pretty well. While this location is a key part of the Chicago highway system, there are alternative routes either in the downtown area or different highways that can route people further around the city. At the same time, this does highlight the importance of fixing the Circle Interchange nearby to have better traffic flow.

It will be interesting to watch the PR for all of this. In fact, is two weeks enough time to start alerting people to Chicago’s own Carmageddon? Yet, I imagine local news outlets will eat this up.

More on luxury basements under London properties

The building of luxury basements under London properties continues:

A lack of room and strict planning laws dictate that the facade of many of London’s picturesque Victorian, Edwardian and Georgian-era neighborhoods must maintain their original character and outward appearance…

“The price per square foot (of basement extension) in areas we work in is probably £400 to £500 per square foot (between $660 and $830 per sq ft). The extra space this brings is probably worth double that,” he added…

“I think for any property with a value over £2 million ($3.2 million) a basement extension is certainly a consideration for the owners,” explained Rob Atkins of London estate agency, Domus Nova. “If you’ve lived in a house for 15 and 20 years and you cannot get a move for the right value then it is an option that can suit that growing family…

“Therefore I wouldn’t be surprised if you see that kind of basement living incorporated in houses for example in Paris, Rome, Vienna or Moscow in the future,” he added.

Without much regulation, it sounds like the incentives are generally there for wealthy owners to create these basements rather than move.

Many of these basements are being built in neighborhoods that are not the oldest in London. At the same time, I would be interested to hear about how such work could interfere with other underground services, whether that is sewers or the Underground or other properties.

Is there any place where this might work in the United States? It would likely have to be in a super-dense area where housing is in high demand. Perhaps Manhattan or San Francisco?

Five case studies of major demolitions

Building large objects is often a Herculean task. But what about the demolition of bridges, dams, aircraft carriers, supercomputers, and rocket hangers? Here is some of the points for tearing down the Bay Bridge between San Francisco and Oakland:

Control the Tension

The piers of the cantilever truss aren’t holding the bridge up. They’re holding it down. “This is like a highly strung bow,” says senior bridge engineer Brian Maroney. (A bow made of 50 million pounds of steel.) “You don’t want to just cut the bow because the thing will fly off in all directions.” So crews will first remove the pavement on the upper deck to lighten the bridge’s load and reduce the tension. Next they’ll isolate steel supports, jacking them out of tension until they can be cut without whipping apart. Then they’ll slowly release the jacks.

Cut the Truss Spans

Named for their length in feet, the 504 and 288 truss spans are not under as much tension as the cantilever, so there’s less chance they’ll explode in your face when you cut into them. Still, caution is called for: The 80-year-old steel is not like modern steel; crews must be prepared for differences in strength and hardness.

Cart the Pieces Away

The steel beams are coated with greenish-gray paint, under which is a coat of lead-based stuff. To avoid contaminating the bay, all that metal has to be trucked away and cleaned, after which it will be resold as scrap.

Build a Monument

The massive art-deco column of pier E1, near Yerba Buena Island, may be preserved as a monument to the bridge that served the Bay Area for 77 years. The E2 pier will also likely remain and be converted into an observation platform for the new span.

And then the piers still have to be demolished. Impressive operation all around. It would be interesting to see all of the costs and manpower associated with such demolitions.

New skinny, tall, and super expensive residential towers in NYC

Here is a look at a new set of skinny, tall, and expensive condo buildings under construction in New York City:

One such apartment tower under construction, 432 Park Avenue, will have a top floor higher than the Empire State Building’s observation deck. Another will have a top floor higher than any in One World Trade Center, which is officially (by virtue of its spire) the nation’s tallest building.

The 432 Park penthouse has sold for $95 million; two duplex apartments at One57, now nearing completion, also are under contract, each for more than $90 million. Even a studio apartment on a lower floor at 432 Park (designed for staff — a maid or butler) costs $1.59 million…

But what’s most striking about these towers is their shape. The boxy old World Trade Center twin towers had a ratio of base width to height of 1-to-7 (209 feet-to-1,368 feet); an apartment house about to begin construction next to the Steinway piano showroom on 57th Street will be a feathery 1-to-23.

That kind of skinniness, also found in skyscrapers in Hong Kong and Dubai, is shifting the focus of high-rise construction. Twenty years ago, only five of the world’s 100 tallest buildings were at least partly residential, compared with 31 today. They include the Princess Tower in Dubai, at 1,358 feet the world’s tallest apartment house.

These towers are shaped by their clientele: a transnational nouveau riche looking for a second (or third or fourth) home. Having made fortunes in nations less regulated economically and less stable politically than the USA, these buyers want a safe investment as much as, or more than, shelter. And they don’t want to pay New York resident income taxes.

Three things I would like to know more about:

1. It would be fascinating to see who lives in these buildings – though buildings like these tend to guard that information. Is this the in form of conspicuous (sort of) consumption: the pricey and incredibly exclusive real-estate holding in the global city? Collect the full set!

2. It would also be interesting to hear more about the construction. A later part of the article mentions “super strong concrete” and new dampers but this is a sizable change from thicker skyscrapers of the past.

3. How do these buildings change the New York City skyline? Does their thinness present a different kind of image?

Scaffolding makes buildings possible

Constructing large buildings and repairing them requires a somewhat simple yet crucial element: scaffolds.

Scaffolds, fundamentally and philosophically, allow for newness—but they are, in every other way, very, very old. The caves of Lascaux, home to paleolithic paintings thought to be the first evidence of humanity’s expansion into artistry, feature sockets in their walls—borings that suggest Earth’s earliest expressionists relied on scaffolding to do their work. There’s evidence of scaffolding—wood, secured with knotted ropes—in ancient Greece. And in ancient Egypt.

In more contemporary times, scaffolds have become ubiquitous. In cities, scaffolds are part of the everyday sightscape, so saturated that they become almost invisible. We duck under them on sidewalks. We hang signs on them, taking advantage of their impermanent platform. We sense their message: that building is happening, that things are changing, that progress is marching on. And we sense that, in their way, they are generous. They are with us, in large part, to help something else come into being.

They may be considered ugly by some but they are indispensable. With them, you can reach great heights without machines. Imagine cherry pickers tall enough to reach the top of the Washington Monument or using helicopters for such work.

While they are necessary parts of our infrastructure, I don’t know that I would go so far as to celebrate their presence on the Washington Monument or other great landmarks. Two quick examples where I have seen scaffolding in action:

1. When I was in grad school at the University of Notre Dame, the school undertook a regilding of the golden dome on the Main Building. This isn’t just a gold color; the school uses gold leaf on the exterior. However, this led to an outcry from seniors that they wouldn’t be able to take graduation pictures in front of the dome because of the scaffolding. If I remember correctly, the school removed the scaffolding for graduation weekend and then started up work again.

2. On a couple of Hollywood studio tours, we saw the interiors of the some of the backlot sets. It might look like a New York City street but once you walked inside, you saw that it was a facade with a bunch of scaffolding inside on the backside of the exterior walls.

In both cases, the scaffolding was a necessary part of the process but it is not the main point. The job of scaffolding is to get out of the way to leave a more impressive structure behind. Perhaps scaffolding at the Washington Monument provides a change of pace but it is meant to be temporary. Like a lot of good infrastructure, you shouldn’t have to consider its necessity if it doing its job.