At ICSC, Retail Shows Signs of Recovery

May 25, 2012 in Construction Trends | No comments

It’s ICSC week, always a big indicator of what’s ahead with the retail portion of our work. As GlobeSt.com reported, research and panels throughout the RECon event see growth on the horizon. The industry is breathing a slow, tentative sigh of relief.

I attended with 30,000 of “my closet friends” and felt the convention as a whole was cautiously optimistic. Compared to last year, there were definitely more people in attendance. There was more energy on the floor. This down cycle is doing its best to move upward.

I spent time with a couple of market research analysts and benefited from interesting conversations about the shopping patterns they are seeing going forward. All seem more focused than in years past. I plan to share more on this later, but for now, here are my takeaways from RECon: 

  • Tenants are going where the “puck is now” and not where the puck is going to be. This short term thinking is different than it was before what I’m calling “The Great Compression” hit.
  • Successful organizations (and people) who willing to work the details will find transactions. That said, there is certainly not as much low hanging fruit as before.
  • There is still a lot of emphasis on single tenant properties. It’s somewhat easier to get one’s arms around the economics.

As the conference closed, I circled back with a couple of attendees to see if they were on the same page. Here are takeways from our customer relationships:

  • Without a doubt, the landscape is improving.
  • Three years ago, retailers were calling saying they had to have some rent relief. This year, there is more talk of LOIs (Letters of Intent), and optimistic discussions of expansion.
  • Larger boxes and junior anchors realize that continued expansion at the fringes of metro markets is not a current sustainable strategy. Infill opportunities are becoming a focus.
  • Infill deals are more complicated and take longer to craft and execute. They require creativity and flexibility on everyone’s part, but often, they are worth it.

Did you attend ICSC RECon this year? Do you agree on the climate? What did you take away? 

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Tags: , , , ,

Our Graduate Gardener

May 16, 2012 in Community Service, Team Building, The Outdoors | No comments

This is the fourth year for our Community Garden. What started with a few tomato plants has expanded to fruit trees and a much larger vegetable patch.

New additions this year include:

Two large mounded beds. “Melon Mountain” will include six varieties of melons; “Squash Mountain” will be home to 5 varieties of squash and a handful of pumpkins. The seedlings are peeking out through small slits in their black weed covers.

A sprinkler system. Heads are mounted on poles throughout the garden, making watering far less labor intensive. We irrigate with water from our on-campus lake.

New plantings. We got creative this year. Beyond Alabama standards like tomatoes, cucumbers, strawberries, okra and peppers, we’re enjoying asparagus, blueberries and potatoes. Herbs are in full bloom.

A resting bench. Years ago, most cities used hewed stone for street curbs. On a recent project downtown, we unearthed some of these old curb structures. Three of these pieces have been formed into a garden bench, a place to rest a bit and enjoy the garden.

The most important addition is Sam Wilson, our gardener.

Sam is a recent graduate from Birmingham Southern College where he led a group of students, creating the school’s Community Garden. This project grew from a small raised bed operation into a working farm.

Like many college grads in this economy, Sam didn’t find just the right job fit upon graduation. He is between either graduate work or a full time career.

In the meantime, he’s with us a few hours each week, helping us. He is responsible for planting, harvesting and garden maintenance. Sam keeps our folks in the loop with regular email updates on the outdoors.

He’s proving to be a great asset to the team. He brought new gardening techniques and a fresh outlook to our Community Garden. We’re seeing his enthusiasm multiply through our team. In turn, we’re able to help him by providing short term employment.

As Sam said in his last email to our team, “This is your garden. Love it and it will love you back.” We’re seeing that in spades right now as we harvest potatoes, strawberries, asparagus, carrots, radishes, lettuce.

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Tags: , , , , , , , , , ,

Is Augmented Reality The Next Evolution of BIM?

May 8, 2012 in Technology | No comments

Last fall, I wrote about getting past the hype of BIM and making it a reality on construction sites. Here is a way we are continuing to use and see BIM beyond the construction drawings. Augmented reality might be useful to you as well…

Augmented reality (AR) is defined as:

“a live, direct or indirect, view of a physical, real-world environment whose elements are augmented by computer-generated sensory input such as sound, video, graphics or GPS data.”

In sports, a good example is that yellow first down line seen on tv football games. The view you’re seeing on the field is reality. The line is how that reality was augmented. This same technology can be applied to real estate and construction, not just ESPN.

AR can integrate with BIM on both smart phones and tablets. In the future, AR might come in glasses like the Google X Concept seen here. The idea is to use the GPS in a device to sync current location to a 3D Virtual BIM model. This will give each user the ability to go to a job site and see the future of the construction within the model, from their own perspective. It takes “virtual tour” to the next level.

Taking the wealth of data that BIM provides, the user will have to have the ability to view a proposed 3D model in the actual environment, whether that is in a space to be remodeled, a Brownfield or Greenfield. This will be a huge step forward in bringing BIM to the jobsite and out of the office.

This video might give you a good test drive of what a BIM and AR teaming could look like. Here are a few ways we see this technology being used now and in the future as it evolves:

  • During the entitlement process to share how the “new project” will appear
  • An owner could see how the property itself would look from any vantage point inside or outside the building.
  • The architect or designer will be able walk around the model of the project to view up in the reality of the surroundings.
  • Excavator Operators could view the area of excavation, and the locations of underground utilities.
  • A building superintendent would be able to look behind walls, floors or ceilings in order to avoid damaging waterlines or studs.

We think that this is another step in how BIM integrated will continue to help us across the spectrum of design, entitlements, construction and facilities management.

How can you see augmented reality changing projects and property development?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Tags: , , , ,

By Donating Office Space, Community Connectivity Comes to Us

May 2, 2012 in Community Service | No comments

When mapping out our corporate campus back in 2006, we allowed for expansion space in the floor plan. It seemed like a smart move for a growing company, and I stand by the decision.

However, challenges the economy has presented the last few years mean the extra space did not fill up as quickly as we anticipated.

Unlit offices and dormant space are good for storage, but not much else.

We decided to put the expansion space to a better use in the meantime by reaching out to deserving non-profits and emerging partners. We can house them during their establishment and growth phase, or in some cases, during periods of funding challenges where they might not be operating otherwise.

The benefits are a two-way street. The organization gets the benefit of the space and support. We get vibrant and passionate people spending time in our breakroom, sharing ideas with our team.

Currently, we are enjoying the company of a USGBC representative. Their Alabama Chapter uses a federal grant to train people in sustainable building techniques, coaching them in job seeking skills for this part of our economy. The program head has recently moved to our campus, and it has been a great pairing.

While we already had a paper recycling program, she has connected us with the Alabama Enviromental Center’s downtown collection spot. We now have a method of recycling materials such as glass that were not previously a part of our program.

This is a win/win for everyone.

In previous posts, I’ve mentioned how you can help the community without a big monetary investment and how to donate meeting space. How are you helping non-profits in your area?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Tags: , , , , ,

Streetwise Parking

April 20, 2012 in Conservation, Green Building | No comments

Starting few years ago, it seems commercial developers and cities began approaching parking differently.

It wasn’t that long ago when 4-5 parking spaces per 1,000 sf of development was the standard. Now, it is more like 3-4 spaces. It’s estimated that in the U.S., we have 500 million surface parking spaces, roughly equivalent to the land mass of Puerto Rico. Amazing.

The Wall Street Journal recently ran a review of Eran Ben-Joseph’s “ReThinking a Lot” book on parking. This MIT expert in urban planning and landscape presents a few historical facts on the topic:

  • Julius Caesar might have been the first to regulate parking, prohibiting chariots and carts from Rome’s commercial district at certain hours.
  • The first American “off-street” parking emerged in the 1920s, with the rise of auto manufacturing.
  • During the suburban flight of mid-century in America, it was considered enlightened public policy to use surface lots as downtown placeholders until redevelopment could take hold.

I think we are all a bit more mindful now. Here’s what I’m seeing on several of our projects:

Reasonable Design. Most of the design, if it is not code driven, is working smarter. We are seeing development plans for 80% of maximum expected traffic level, rather than accommodating those few days (like Black Friday/retail) when every parking space is taken. The stalls themselves are also getting smaller.

Regard for Runoff. There is a little more bioswale type of thinking, including porous paving and strategic placement. This results in better quality storm water discharge/lower turbidity.

Attention to Vegetation. Parking fields are being landscaped with more centralized tree mass. These areas are not just an afterthought: small marooned pods placed every 50′ or 100′, sometimes dictated by code. They seem more intentional and meaningful to the end users.

Move to lighter-colored surfaces. When compared to asphalt, lighter surfaces create less of a heat sink. This lowers light pollution and energy expended.

The results? Better quality of life for us and future generations.

I think we’ll see many more changes going forward. How have you seen parking evolve?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Tags: , , , , ,

Playbooks vs. Torpedoes: Which Management Style Wins?

April 13, 2012 in Leadership, Management | No comments

A Confederate Torpedo Boat

Peter Drucker, a great thinker in management theory and practice, was often quoted on the importance of shaping “the futures that have already happened.” As we are seeing this Recession in the rear view mirror, we are thinking more about this aspect of our company.

Is our procedural playbook thick enough? At times would a “Damn the Torpedoes” attitude better serve us?

Last week I had lunch with the former division president of a billion dollar a year company. When my friend ran the company he looked for entrepreneurial managers who understood the bottom line and respected administrative procedures at the same time, but never let “the rules” get in the way of solid customer service. They were successful.

All other things being equal, the difference in companies from the middle to the top in their fields is quality talent and leadership. This means giving the horse its head, then trusting it to pick its speed and way. I like to think we hire entrepreneurial managers, so which style do we need most going forward? Playbook or Torpedo?

Here is how I think customer relationships are best served:

Hire “get it done” types. Ensure they are technically savvy, have a respect for business ethics and understand the law. Managers and craftsmen should be adaptable.

Trust in them to do it right. Giving them leeway to do things as they see fit and don’t burden them with red tape.

Maintain a fairly flat organization profile.

Which management category does your organization fit? How are you looking to the futures that have already happened?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Off to the Races

April 4, 2012 in Family, Team Building, The Weekend | No comments

For three years running, Barber Motorsports Park has hosted the Indy Grand Prix of Alabama. Stewart Perry has been there from the beginning, enjoying the weekend of family fun the races provide.

This year, highlights included the entry of V6 turbo-charged Chevy and Lotus engines and a chance to ride the ferris wheel from Neverland Ranch. We even got to enjoy a rainbow over the track.

Last weekend was a great time for our team at the races. Many thanks to Mr. Barber for making it all happen.

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

Tags: ,

Construction Costs Headed Up in ’12…But How Much?

March 30, 2012 in Commodities Pricing, Construction Trends | 2 comments

Economics of construction cost can be confounding at times.

Just when we think pricing should stabilize, it moves in the opposite direction.

Knowing the current cost for a project maybe painful, but it sure beats the alternative. This Construction Executive article summarizes the “why” behind the materials aspect. Factors impacting cost are:

*Supply/demand balance;

*The amount of speculation in futures markets;

*Changes in basic design parameters/building codes.

Depending on region and construction type, 2011 costs rose between 6% and 8%. This sounds large, I know, given the economy’s relative slow growth. While demand was still mostly slow, it’s the same thing we have heard for a few years: “global growth emerging nations.”

Specific to our market, I asked Charley Saunders, head of our estimating team, to give me his take. His thoughts:

  • There was a spike at the end of 2011 and the first 2 months of 2012, but things appear to be leveling off.
  • Steel has been particularly volatile.
  • New energy codes are coming into play and we are seeing price spikes in roofing, storefront and HVAC systems. These changes can be significant and should not to be overlooked in the pro forma.
  • Oil/gas prices are still inching upward which, if unchanged, will put upward pressure on pricing.
  • Some trades appear to be playing games with the specifications. We are paying close attention to scoping sub/vendor quotes to insure they are per plans and specs. We are not sure why, but this has been a issue recently.

How have prices changed in your area? What trends are you seeing?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email


Tags: , , , , , , ,

Teamwork: Moving Past the Cliche

March 23, 2012 in Team Building, The Outdoors | 2 comments

If I were to rank overused words in business today, “sustainability” would be at the top of my list. “Teamwork” is close behind, only because most do not walk the walk. In fact, I think sometimes “teamwork” has become so cliche that it has lost meaning.

So what is teamwork?

Ten years ago, I took a group of Boy Scouts on a 12-night hiking trek to the Philmont Scout Ranch in New Mexico. During the course of those 12 days, my tent partner and I would set up our tent every evening. The first 2 or 3 nights it seems like we talked a lot to ensure we knew our roles to get the tent erected properly. After about the fourth night, we quit talking because we both knew what the left hand and the right hand were doing. We erected the tent in half the time, seamlessly.

People will talk about teamwork, shaking hands and patting each other on the back. They will say, “This is my team member.” Perhaps they will qualify the statement with “external team member” or “internal  team member.” To me, without to the core belief, it does not count. Teamwork is developed and earned over time.

Over the years, I have created the following checklist. True team members:

1. Surrender their borders to each other.

2. Work together unconditionally, expecting to do more than their fair share.

3. Have their eyes on mutual goals, are unselfish and willing to share.

4. Share the praise and take the hits when they make mistakes. (This is easier said then done.)

5. Huddle together in the face of adversity rather than scatter.

To me, these five characteristics define true teamwork. The bonds strengthen with trust and time.

When you say you are “working as a team” are you meeting this definition or simply using a popular term?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 


Tags: , , , , ,

Corporate Culture: What Does Your Team Value?

March 19, 2012 in Leadership, Management | No comments

We are hiring for a new senior level project management position. The process has us thinking on many levels, including how candidates would fit into our team dynamic. I was reminded of a recent conversation with the former CEO of J.A. Jones, at one time the largest construction company in the world.

Several financial reasons lead to their demise, but from our talk, it also sounded like the company’s culture was lost. In his words, they had forgotten “what it meant to be a J.A. Jones team member.” What was it about their earlier culture that drove people to strive to be the best? Was it forgotten or not supported along the way?

To us, it is important that we maintain the right culture and constantly communicate it to both our new and existing management. This is broad, but includes what we believe in, our core values, our corporate ethics and how we expect things to be done routinely. We are continuously reinforcing. The real winning combination is when we make hiring decisions based on good technical abilities, ensuring the culture is communicated accurately and is a fit.

Remember the Blake and Mouton behavioral grid of leadership styles? That to me somewhat defines the foundations of most corporate cultures. Here is my interpretation of their culture styles:

Accommodating: thoughtful attention to needs of people for satisfying relationships; comfortable, friendly organization atmosphere and work tempo.

Authority-Obedience: efficient operations where human elements interfere to a minimum degree.

Indifferent: exertion of minimum effort to get required work done.

Status Quo: balancing concern for people with concern for production.

Team: work accomplishment is from committed people; ‘common stake’ leads to relationships of trust and respect.

I would like to think the “team ” description is what most closely aligns to our working style. Hopefully we communicate this routinely–it’s certainly what we strive for. Where do you fit? Is culture and its communications important to you?

Share

Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email

 

 

Tags: , , ,

« Older entries