The rush of commercial real estate development has truly become a statewide phenomenon, and the 2020 Real Estate Development (RED) Awards reflect just how widespread the activity has been in Arizona.

AZRE magazine received a record number of nominations for the RED Awards this year, and 17 were for projects away from the Valley, making it a truly statewide event. And just like the number of nominations was something never before seen in the 15-year history of the RED Awards, this years RED Awards ceremony is a first, too. Because of the ongoing coronavirus crisis, this years RED Awards ceremony is being held virtually, which now makes this annual showcase of Arizonas best commercial real estate projects a global event.

This years projects were some of the most impactful developments the state has seen in this millennium. Now, the world can celebrate the incredible commercial real estate projects that were completed in 2019. Here are the 15th Annual RED Awards.

Here are the finalists for the 2020 RED Awards, by category:

Owner: Marana Unified School District

General Contractor: CHASSE Building Team

Project Manager: CHASSE Building Team

Architect: Corgan

Subcontractors: Comfort Systems, PM&M Drywall, J.B. Steel, Blanco Concrete, Sun Valley Masonry, Advanced Structural Engineering, Inc., Energy Systems Design, Inc.,

Owner: Northern Arizona University

General Contractor: CORE Construction

Architect: RSP Architects

Subcontractors: Meyer | Borgman |Johnson; McKay Conant Hoover, Inc.; Henderson Engineers; Peak Engineering; The Ruzika Company, Inc.

Owner: Western Maricopa Education Center

General Contractor: McCarthy Building Companies, Inc.

Project Manager: McCarthy Building Companies, Inc.

Architect: SPS+ Architects

Subcontractors: Urban Energy, Stonecold Masonry, Progressive Roofing, Rouser Concrete, Pete King

Owner: Banner Health

General Contractor: Sundt/DPR (Joint venture)

Project Manager: Sundt/DPR (Joint venture)

Architect: Shepley Bulfinch/GLHN

Subcontractors: Sundt Construction (concrete & civil), DPR Construction (interior framing & drywall), University Mechanical, Sturgeon/Stark, Sun Valley Masonry

Owner: RyanPlaza Ironwood, LLC

Developer: Ryan Companies US, Inc. and Plaza Companies (Joint venture)

General Contractor: Ryan Companies US, Inc.

Project Manager: Ryan Companies US, Inc.

Architect: Butler Design Group

Subcontractors: Schuff Steel, Commonwealth Electric Co. of the Midwest, McKinney Glass, Diversified Interiors

Owner: Summit Healthcare

Developer: NexCore Group

General Contractor: Haydon Building Corp.

Project Manager: NexCore Group

Architect: Orcutt Winslow

Subcontractors: Western Grade, DW Lusk, Castle Steel, TDI Industries, Carlson & Sons

Owner: Casino del Sol

General Contractor: McCarthy Building Companies, Inc.

Project Manager: McCarthy Building Companies, Inc.

Architect: Cuningham Group Architecture, PA

Subcontractors: Mirage Plastering, Inc.; Conway Tile Co., Inc.; Cutting Edge Fabrication LLC; Progressive Roofing; Millwork by Design, Inc.

Owner: Somera Capital Management, Jackson-Shaw, Plaza Companies, Arizona State University, Holualoa Companies

Developer: Jackson-Shaw

General Contractor: Layton Construction

Project Manager: Plaza Companies

Architect: Cooper Carry Inc.

Subcontractors: Hardrock Concrete Placement, Pete King Construction Company, Progressive Leasing, Diversified Interiors, Beecroft LLC.

Owner: Great Wolf Resorts, Inc.

General Contractor: Mortenson

Project Manager: Mortenson

Architect: Gensler

Subcontractors: Suntec, ISEC, PCI, MKB, Commercial Air/Pueblo Mechanical

Developer: Seefried Industrial Properties, Inc.

General Contractor: Ryan Companies US, Inc.

Project Manager: Ryan Companies US, Inc.

Architect: Ford & Associates Architects, Inc.

Subcontractors: Granite Construction, Suntec Concrete Inc., Architectural Openings, Charles Court, HACI

Owner: Northrop Grumman

Developer: Douglas Allred Company

General Contractor: Willmeng Construction

Project Manager: Willmeng Construction

Architect: Balmer Architectural Group

Owner: Pasternack Properties

Developer: Irwin G. Pasternack, AIA, Architect and Associates pc

General Contractor: Graycor Construction Companies and Nitti Builders LLC

Project Manager: Graycor Construction Companies and Nitti Builders LLC

Architect: Irwin G. Pasternack, AIA, Architect pc

Subcontractors: Desert Structures, Deer Valley Plumbing, Specified Electrical Contractors, Miner Southwest, Olympic West Fire Protection, Ricor Inc., Ronning Landscaping, Scotts Diversified, Roofing Southwest, Suntec Concrete

Owner: The Opus Group

Developer: Opus Development Company

General Contractor: Opus Design Build

Project Manager: Opus Design Build

Architect: Opus Architecture & Engineering

Subcontractors: Hunt, Cannon & Wendt, Horowitz, Bel-Aire Mechanical, Suntec

Owner: CRP/Marwest Landing | Owner, LLC

Developer: CRP/Marwest Landing | Owner, LLC

General Contractor: D.L. Withers Construction

Project Manager: Ware Malcomb

Architect: Ware Malcomb

Subcontractors: Hunter Engineering, TLCP Structural, Inc., Kraemer Consulting Engineers, PLLC, Studio DPA, Speedie & Associates

Owner: Conor Commercial Real Estate

Developer: Conor Commercial Real Estate

General Contractor: McShane Construction Company

Project Manager: McShane Construction Company

Architect: DLR Group

Subcontractors: Suntec Concrete, The Structures Group SW, CJS Enterprises, Jenco Inc., Olympic West Fire Protection

Owner: RED Development

Developer: RED Development

General Contractor: Whiting-Turner Contracting Company

Project Manager: Suntec Concrete

Architect: Omniplan

Subcontractors: Suntec Concrete, Stonecold Masonry, Walters & Wolf, NKW, DDE, PK Associates Structural

Owner: Forum Real Estate Group

Developer: Forum Real Estate Group

General Contractor: JE Dunn Construction

Project Manager: JE Dunn Construction

Architect: Humphreys & Partners Architects

Subcontractors: Suntec Concrete, PK Associates Structural, E&K Companies, Diversified Interiors, Blount Contracting, HACI

Owner: Fenix Development, Inc.

Developer: Fenix Development, Inc.

General Contractor: Okland Construction

Excerpt from:
Watch the 15th Annual RED Awards here - AZ Big Media

DUBLIN, April 8, 2020 /PRNewswire/ -- The "Net Zero Energy Buildings Market Research Report: By Construction, Equipment - Global Industry Size, Share, Trends and Growth Forecast to 2024" report has been added to ResearchAndMarkets.com's offering.

In 2018, the global net zero energy buildings (NZEB) market generated a revenue of $896.6 million and is projected to attain a value of $2,106.6 million in 2024, advancing at a 15.6% CAGR during the forecast period (2019-2024).

The market is growing due to the plans of government regarding energy efficiency and rising requirement for NZEBs for reducing greenhouse gas (GHG) emissions. A building with zero net energy consumption, that is, the amount of energy utilized by the building is generated through renewable sources on the site, is referred to as NZEB.

In terms of construction, the net zero energy buildings market is bifurcated into commercial and residential. Between these two, the commercial category held the larger share, of 98.4%, of the market in 2018. This is because commercial construction requires more floor spaces, which results in increased construction value of the building. In addition to this, the governments around the world are introducing policies for encouraging construction of NZEBs for reducing power consumption through fossil fuels. The residential category is predicted to grow at a faster pace during the forecast period.

When equipment is taken into consideration, the net zero energy buildings market is categorized into heating, ventilation, & air conditioning systems, solar photovoltaic (PV) panels, lighting systems, insulation panels, and others (which include solar thermal systems and wind turbines). Among these, the solar PV panels dominated the market during the historical period (2014-2018), with a share of 57.1% in 2018. This was because commercial floor spaces need a considerable amount of energy to power all appliances in a building, which results in increased requirement for solar PV panels.

Among all the regions, namely Asia-Pacific, North America, Europe, and Rest of the World, North America accounted for the largest share, of 79.1%, of the net zero energy buildings market in 2018, and is further predicted to witness the fastest growth during the forecast period. This is because of the rising concerns regarding greenhouse gas emissions, which, in turn, has led to a shift toward NZEB. In addition to this, the increasing number of government initiatives is also resulting in the growth of the market.

One of the key driving factors of the net zero energy buildings market is the requirement for NZEBs for reducing GHG emissions. The burning of fossil fuels for producing energy has resulted in an increased percentage of carbon dioxide and other harmful gases in the atmosphere. As per the World Green Building Council, construction and buildings account for over 35% of the global energy usage and approximately 40% of energy-related carbon dioxide emissions. Thus, in order to prevent further rise in the percentage of these gases in the atmosphere, several countries are shifting toward NZEBs.

The energy efficiency plans by governments is another major driving factor of the net zero energy buildings market. Several governments around the world are taking various initiatives for using renewable energy at a larger scale and reducing the utilization of non-renewable energy in both commercial and residential areas. Such plans are helping governments in making use of other renewable energy sources for fulfilling the energy requirements. For instance, the California Public Utilities Commission implemented the California Long-Term Energy Efficiency Strategy Plan, with the aim of adopting best practices for energy efficiency.

Hence, the market is registering growth due to the increasing number of initiatives regarding energy efficiency by the government and rising need for NZEBs to reduce GHG emissions.

Key Topics Covered

Chapter 1. Research Background

1.1 Research Objectives

1.2 Market Definition

1.3 Research Scope

1.3.1 Market Segmentation by Construction

1.3.2 Market Segmentation by Equipment

1.3.3 Market Segmentation by Geography

1.3.4 Analysis Period

1.3.5 Market Data Reporting Unit

1.3.5.1 Value

1.4 Key Stakeholders

Chapter 2. Research Methodology

2.1 Secondary Research

2.2 Primary Research

2.2.1 Breakdown of Primary Research Respondents

2.2.1.1 By region

2.2.1.2 By industry participant

2.2.1.3 By company type

2.3 Market Size Estimation

2.4 Data Triangulation

2.5 Assumptions for the Study

Chapter 3. Executive Summary

Chapter 4. Introduction

4.1 Definition of Market Segments

4.1.1 By Construction

4.1.1.1 Residential

4.1.1.2 Commercial

4.1.2 By Equipment

4.1.2.1 Solar PV panels

4.1.2.2 Insulation panels

4.1.2.3 Lighting systems

4.1.2.4 HVAC systems

4.1.2.5 Others

4.2 Market Dynamics

4.2.1 Drivers

4.2.1.1 Demand for NZEBs to reduce GHG emissions

4.2.1.2 Energy efficiency plans by governments

4.2.1.3 Impact analysis of drivers on market forecast

4.2.2 Restraints

4.2.2.1 High development cost and complex designing of NZEBs

4.2.2.2 Impact analysis of restraints on market forecast

4.2.3 Opportunities

4.2.3.1 Development initiatives for NZEBs

Chapter 5. Key Performance Indicators

5.1 Construction of NZEBs

5.2 Cost Analysis

5.3 ZEBRA2020

Chapter 6. Regulatory Framework

6.1 U.S.

6.2 Canada

6.3 U.K.

6.4 China

6.5 Japan

6.6 South Korea

6.7 Australia

6.8 Associations

Chapter 7. Global Market Size and Forecast

Chapter 8. North America Market Size and Forecast

Chapter 9. Europe Market Size and Forecast

Chapter 10. APAC Market Size and Forecast

Chapter 11. Row Market Size and Forecast

Chapter 12. Competitive Landscape

12.1 Global Strategic Developments of Key Players

12.2 List of NZEBs in the U.S.

Chapter 13. Company Profiles

13.1 Kingspan Group plc

13.1.1 Business Overview

13.1.2 Product and Service Offerings

13.1.3 Key Financial Summary

13.2 NetZero Buildings

13.3 DPR Construction

13.4 Daikin Industries Ltd.

13.5 Rockwool Group

13.6 Xtratherm Limited

13.7 SunPower Corporations

13.8 Solatube International Inc.

For more information about this report visit

https://www.researchandmarkets.com/r/3negpm

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

Media Contact:

Research and Markets Laura Wood, Senior Manager [emailprotected]

For E.S.T Office Hours Call +1-917-300-0470 For U.S./CAN Toll Free Call +1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907 Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets

http://www.researchandmarkets.com

Here is the original post:
Global $2.1 Bn Net Zero Energy Building (NZEB) Markets, Forecast to 2024 - Construction of NZEBs, Cost Analysis, and ZEBRA2020 KPIs - PRNewswire

These people have to go to work and sweat all day with fear: A Q&A with Christopher Morgan, the construction worker petitioning the province to shut down job sites

Christopher Morgan, a 36-year-old sheet-metal worker, is currently employedon a construction site building high-rise condos in Liberty Village. Three weeks ago, he started an online petition asking the Ford government to shutter all construction sites, which are usually packed with people. The petition has since received more than 50,000 signatures. Last week, Doug Ford announced that he was shutting down all non-essential construction sites. The definition of essential is broad, though, and any commercial or residential projects that already have a permit will continue. Morgan spoke to Toronto Life about how the government isnt doing enough, where hes washing his hands, and why tradespeople are continuing to work in unsafe conditions.

You started a petition calling for all construction sites to be shut down, but the response from government and industry has been slow. What do you want to see happen?Most of the job sites in Toronto are big, 200 or 300 people. Just down the road from Liberty Village theres a site where theyre still building out of the pit. Theres no way they could have proper washrooms or sanitation. Those workers dont even have a place to eat their lunch. If it was up to me, Id say anything relevant to health care should stay openhospital projects, walk-in clinics. But I dont think a condo or office building is essential right now. If you closed down non-essential sites, you could have more construction workers on the health care projects and get them done faster.

What did you think of Premier Fords announcement last week, to shut down non-essential sites?Its putting a Band-Aid on a shotgun wound. Everything is the same except theyre not starting any new projects.

The construction industry is taking different approaches to dealing with the crisis: some employers have shut down their sites, some have continued as normal. What do you think of the response so far?Ive heard of things at all ends of the spectrum. On some sites, theyre going crazy with preventative measures. Theres hand sanitizer everywhere and theyre policing people to make sure no ones too close to anyone else. Others are the same as ever, with no running water. The washrooms are always dirty, guys stand on the toilet seat in their work boots, caking the seat with dirt. Im sure a lot of guys who are responsible for cleaning the washrooms arent working right now. On those sites, theres nowhere you can wash your hands to eat your sandwich at lunch. Men are grabbing the railings, sharing tools, carrying the same ladder and the same hammer drills. You might not know you have the virus for a week and a half, and youd never think you got it from sharing a hammer drill with someone.

What have things been like on the job for the last month?My job site is still running, and my company issues gloves and masks. Theyve always been good at making sure we have N95s. I was off work from March 13 to April 5 because I started showing symptoms of the virus: my body was aching and I had a fever of 38.2. Five or six other people on my site showed symptoms, too, and they told us we had to stay home. I called Telehealth and they said to monitor the symptoms, and I got better. I honestly think it was just anxiety and stress built up in my body. I had the same symptoms on Sunday night, the night before I returned to site.

What was it like on site when you got back?There are still 100 or so people working thereplumbers, electricians, foremen, elevator guys. Before, when youd go up on a hoist, youd have maybe 20 guys, so close that wed make take him out for dinner first, eh? jokes. Now theyve limited it to one or two people on the hoist, plus an operator. There are hand-washing stations set up with soap and water drums. The waters not clean enough to drinkthey put warning signs all over itbut at least we have somewhere we can wash up before and after we eat.

So you dont think projects like condo towers are essential right now. Thats fair. Why start a petition about it?Construction workers are being forced into situations they shouldnt be in. The construction workforce in Canada is huge, more than 1.5 million people. In Ontario, existing projects have been deemed an essential service. Thats a lot of people going to work. I doubt theyre coming home and sleeping in tents or garages like some of the doctors on the front lines. They could be exposing children and partners. Im just disgusted that the government is making these decisions because they want to make money. I just thought, Theres got to be something we can do. Were just the little guys, the blue-collar workers. Lets use social media.

And did you expect it to garner so much support?At first, I was concerned. I thought, Is this going to jeopardize my job? The second day the petition was up, the president of my union called me. He was on my side. They dont want these sites open either. A lot of people are tripping out. Theyre having a hard time handling whats going on in the world. And for what? To get a condo built faster in Toronto?

I saw a video last week of a construction worker talking to a crew on a site in Etobicoke, telling them they could walk out over unsanitary conditions. Are people doing that?I enjoyed watching that. It was nice to see someone standing up. I hope it inspired people to think, Maybe I shouldnt be going to work. Some builders are saying to construction workers, If you leave now, dont think you can come back here afterwards. Our unions would protect people if they felt unsafe and walked off the job. But every guy I know is still going to work. Theyre afraid of not having a job when this is all over.

What would you say to people who have to choose between their income and potentially getting sick?Thats the main reason I started this petition. The government says to stay home. But people who are working in these essential jobs still have to go to work. I just want Doug Ford to be honest. Just say hes worried about the economy, and thats why hes forcing people to put up drywall in some condo in Liberty Village. What about the people who are new to Canada and doing this work, or the people who just started working as apprentices, or just bought a house? Those people have to go to work and shake and sweat all day with fear, and then lose sleep at night thinking, Did I get it? I know you have to put food on the table and you have to pay for your mortgage or your rent. But its not right.

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These people have to go to work and sweat all day with fear: A Q&A with Christopher Morgan, the construction worker petitioning the province to shut...

The extended shutdown of construction sites throughout New York will affect loans, insurance costs and supply availability (Credit: iStock)

Most types of construction in New York have been halted for more than a week, an unprecedented statewide shutdown that presents a slew of financial and logistical challenges for builders.

The potential consequences are manifold as development timelines are stretched indefinitely and workers on projects allowed to continue risk exposure to the coronavirus. While the long-term effects of the suspension remain to be seen, experts say projects will likely take a financial hit when it comes to construction loans, insurance and labor.

Joshua Emory, a principal at Primrose Capital, said the financial pain of construction stoppages most affect projects close to completion. Borrowers that have drawn 90 percent of the loan with three or four months of work left will be facing interest payments on a very large loan balance until the project is done, he noted.

He said some lenders might grant borrowers concessions or interest-payment deferrals, but there is no guarantee.

Those tough conversations are beginning to unfold, he said, and unfortunately we dont have a precedent.

Emory said he expected many lenders and borrowers to find a happy medium, especially for debt funds subject to less regulation than banks.

[Theres] no reason to sour the relationship just because of the site shutdown thats out of the hands of everyone involved, he said.

Jim Fraser, head of commercial real estate finance at Built, which provides software to manage construction loans, said restarting construction work will be costly and, depending on the length of time a project sits, its value could be diminished.

Its one thing if this is short-lived a month or maybe two. Its another thing if this drags on, he said. Its time-sensitive, is the bottom line.

Of the 29,587 construction loans nationwide using Builts platform as of April 6, about 16 percent were affected by government-ordered stoppages related to the pandemic. The affected loan commitment value is more than $4.3 billion.

Fraser said no consensus from lenders has emerged on whether they will respond to affected borrowers, although he pointed to an interagency statement on loan modifications issued by the Federal Deposit Insurance Corporation as a start.

According to the statement, modifications of loan terms will not automatically categorize changes related to Covid-19 as troubled debt restructurings, a substandard classification that is subject to additional regulations.

When projects across a city, state or region are permitted to resume, they will face another problem: a surge in demand for workers and supplies.

Linda Foggie, head of international real estate and construction consulting firm Turner & Townsends New York City office, said supply of materials could be tight when projects come back online en masse. Projects in the city will also compete for labor and approvals from the Department of Buildings, the Department of Housing Preservation and Development and other agencies.

When we do return, there will be considerable pent-up demand for municipal inspections, she said. There will be many [projects and clients] who will need to mitigate the lost time.

Joe Charczenko, of insurance and surety brokerage Construction Risk Partners, noted that construction insurance prices were already rising before the pandemic. A months-long shutdown of the economy and an impending recession could further contract the insurance market.

I think its going to hurt, he said. What we have is the convergence of a hard market and confusion of how much new work we will have when we turn the spigot back on.

Essential construction in New York includes work on healthcare facilities, utilities and affordable housing, as well emergency construction to stabilize a site. According to the Department of Buildings, as of Wednesday, just over 130 sites had been separately approved as essential by the city, in addition to those exempted by the states sweeping order.

Building Trades Employers Association President Lou Coletti noted that even at these essential sites, his members are seeing a huge drop-off in workers.

Even with taking all the precautions, were getting 20 to 40 percent of the workforce that is showing up for work, he said.

The federal CARES Act extended unemployment benefits to individuals who are typically not eligible, notably independent contractors. Some construction unions, including Mason Tenders District Council of Greater New York and Long Island and the New York City District Council of Carpenters, have also started allowing members to tap into their retirement savings.

Unions will have to grapple with a drop in the amount of money being fed into their benefit funds, but Tamir Rosenblum, general counsel at the Mason Tenders District Council, said his organization can withstand the decrease in work.

Its a resilient program, he said. Its not running like an airline, which is out of business after two weeks of this.

Write to Kathryn Brenzel at [emailprotected] and Erin Hudson at [emailprotected]

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Shutdown poses big risks for projects even when it ends - The Real Deal

NAIOP Southern Nevada presents FACTS! Amidst COVID-19, Lending, Development and Construction: What is Actually Happening & Not Happening in Southern Nevada.

At its free April virtual breakfast. Panel speakers includeKyle Nagy, CommCap Advisors; Guy Martin, Martin-Harris Construction, and Doug Roberts, Panattoni Development Company. Hayim Mizrachi, MDL Group, will moderate the discussion. These industry experts will discuss what is actually happening in the commercial real estate development community in Southern Nevada during the COVID-19 pandemic. Find out if the pipeline of new tenants leasing space in new developments has dried up and are lenders just waiting for the foreclosure stay to be lifted so they can repo commercial properties, plus much more.

The meeting is sponsored by Cox Business.

NAIOP Southern Nevada provides educational and informative programs during its monthly member meetings on topics relevant to the commercial real estate development industry. Year-round, NAIOP Southern Nevada hosts mixers and educational programs for its members and potential members. To register or for more information, call (702) 798-7194 or visit http://www.naiopnv.org.

When: Thursday, April 16, 2020

Participant Sign On 7:45 a.m.Webinar program 8:00 a.m. 9:00 a.m.

Where: The webinar is free and you can register athttps://zoom.us/webinar/register/WN_dtdcDPZWRt6zYLGKliY47g.Registrants will receive an email from Zoom with a login link to the webinar.

About NAIOP Southern Nevada

NAIOP Southern Nevada is a chapter of NAIOP, the Commercial Real Estate Development Association, and it comprises more than 600 members serving the Southern Nevada market. NAIOP is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate, with 20,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visitwww.naiopnv.org.For more information on NAIOP corporate, visitwww.naiop.org.

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NAIOP Southern Nevada presents FACTS! Amidst COVID-19, Lending, Development and Construction: What is Actually Happening and Not Happening in Southern...

By Gregory Call, Rebecca Suarez, Allyson McKinstry and Tracy Reichmuth April 7, 2020, 4:07 PM EDT

Few industries have been as impacted as much as brick-and-mortar retail. Shopping centers and retail stores (other than those providing essential services) have closed and retailers and landlords have been talking to their lawyers. It is certain that the advice retailers and retail landlords have been getting is we need to read the lease language, understand the specific facts, and see what law there might be that deals with similar situations.

Just a couple of weeks ago, there were questions about whether stores and shopping centers had to be closed, should be closed, and could be closed. But that has changed rapidly. Now stores and shopping centers have closed, and the decisions made by retailers and retail landlords to close are not being questioned.

Closing stores has had a dramatic impact on sales for many retailers. While many retailers have online businesses, the vast majority of their sales still come from in-store sales.

The only reason a retailer enters into a lease is to operate its business in the specified space meaning to sell its merchandise to customers in the store. With both stores and shopping centers now closed, the opportunity for those sales is gone and the lease provides the retailer no benefit.

For the past two weeks, retailers have faced questions regarding the payment of rent. For brick-and-mortal retailers, rent is a major expense across their portfolio of leased space. For many major retail chains, rent payments total tens, and in some cases hundreds, of millions of dollars a month. Alternatively, rent payments are the primary source of revenue for retail landlords.

So what do 100-page retail leases say about the circumstances retailers and landlords face in these times? There are few leases (we have seen none) that consider the impact of a pandemic. Retail leases are instead filled with language that recognizes the fundamental nature of the bargain the parties struck: The landlord will provide a space for the retailer to operate its business, and if the retailer has a space to operate its business then the retailer will pay monthly rent.

Retail leases also contain agreed-upon provisions regarding anticipated risks that could prevent retailers from operating their businesses. For example, leases frequently contain provisions addressing physical damage to the leased space that prevents the retailer from operating its business. Similar provisions deal with other contemplated risks, including condemnation and hazardous materials.

The construction provisions of most retail leases similarly reflect this concept, providing that the payment of rent begins only after the tenant can open its store and begin to operate its business. All of these provisions recognize the fundamental bargain struck between retailers and landlords: To the extent that the retailer cannot operate its business, rent will not be required for the time and extent that the business cannot be operated.

Co-tenancy provisions are currently not satisfied, providing tenants with additional arguments.

Given the widespread closure of stores, co-tenancy provisions provide retailers with additional support for not paying or abating rent under the lease. A key aspect of shopping centers is that they gather tenants together in one location so that each tenant can benefit from the customers that other tenants bring to the shopping center.

Retail landlords in many leases agree that rent will vary depending on which tenants, and how many tenants, occupy and operate in the shopping center. These clauses are called co-tenancy provisions and they provide that if certain specific tenants (often referred to as key or anchor tenants) are not open and operating in the center, or if the percentage of total space occupied by operating tenants who qualify under some agreed-upon definition falls below a certain level at the center, the rent the tenant owes will be lower.

The language of these clauses varies. In interpreting these clauses, courts have found the provisions are not promises by the landlord, but instead conditions that, if not, met allow tenant to pay alternate rent. For example, in Old Navy LLC v. Center Developments Oregon LLC,[1] the court found:

TheLease does not require [Landlord] to keep Key Stores at the Mall, and [Landlord] does not promise to keep Key Stores at the Mall ....If the conditions for operating the Old Navy store at the Mall are not met, Old Navy may choose to close its store and continue paying rent or it may choose to pay Alternate Rent-thus, invoking a tiered rent structure. In other words, Article 13.4 does not provide for damages if [Landlord] fails to keep certain tenants at the Mall. If [Landlord] leases to an entity that does not qualify as a Key Store, it is not in breach or default of the Lease and it does not owe Old Navy any damages. Rather, it must notify Old Navy of the Key Store closure, thereby triggering Old Navy's right to either pay Alternate Rent or close its store and pay Minimum Rent.

Landlords, in response, are arguing that retailers should pay full rent even though they are not able to operate their stores in the rented space, and are pointing primarily to a single paragraph in each lengthy lease: the act of God or force majeure provision. That paragraph often says something like this:

If either party is delayed, hindered, or prevented from the performance of an obligation because of strikes, lockouts, power failure, restrictive governmental laws or regulations, riots, insurrection, war, or another reason not the fault of the party delayed, but not including financial inability, the performance shall be excused for the period of delay. Tenant shall not be excused from the payment of rental, additional rental, or other payments.

Retailers can point to many problems with landlords force majeure argument.

First, tenants may point out that the provision has no application because the retail tenants right to not pay rent does not arise because of a force majeure event. Rather, the tenants right to not pay rent arises because the tenant no longer has a space to operate its business. The current situation is covered by numerous other provisions throughout the lease that provide that if tenant does not have a space to operate its business, it therefore does not have to pay rent.

Second, any reasonable reading of the force majeure provision in the context of the entire agreement makes clear that language specifying that the tenant is not excused from paying rent applies only in situations where the tenant cannot pay rent because of an unforeseen event (e.g. the tenants headquarters has been destroyed and it cant process rent checks). But such language has no application to the current situation, in which a tenant has no space to operate its business.

An interpretation of force majeure language that excuses landlord from its obligations but requires tenant to pay regular rent runs contrary to express language the parties agreed to elsewhere in the lease regarding known risks, such as fire and condemnation.

Third, courts have long held that force majeure provisions should be narrowly interpreted. That rule raises doubts that a force majeure provision that does not specifically include pandemics has any application to the current situation. The rule further weighs against any interpretation that creates a situation (contrary to other provisions in the lease) in which a tenant must pay rent even though it has no location to operate its business.

Landlords also contend that force majeure provisions negate the carefully negotiated co-tenancy provisions found in leases. Landlords contend that force majeure provisions excuse landlords performance in satisfying the co-tenancy occupancy levels. The obvious problem for landlords is that co-tenancy is a condition that determines what rent is paid not an obligation of the landlord.

Existing legal authority supports retailers argument that where the landlord fails to provide a space for the retailers operations, rent obligations are excused.

Beyond simply reading the lease, attorneys for retailers and retail tenants are looking for past decisions involving analogous situations. As just one example, there is interesting law from Prohibition-era cases examining the impact of Prohibition on leases for businesses that sold alcohol. In those cases, courts determined that if a contract was legal when it was made, and the performance of it is rendered illegal by a subsequent law, then both parties would be discharged from their obligations.[2]

There are also more recent decisions regarding frustration of purpose and impossibility that have application here. For example, in Saab v. Norton Family Inc.,[3] a retailer and a shopping center owner entered into a commercial lease that expressly provided that the retailer was to use the leased premises only for the purpose of running a restaurant and serving liquor.

After operating a restaurant for two years, the retailers restaurant and liquor licenses were revoked by the city and the retailer abandoned the leased premises. The shopping center responded by suing for unpaid rent.

Applying the doctrine of frustration of purpose, the court found that the retailer was clearly warranted in terminating its obligations under the lease. The court explained that it was physically possible for [the retailer] to remain in possession and continue to pay rent, but it would have received no value in return because it could not do the one and only thing for which it had leased the premises and which it was permitted to do under the Lease; namely, operate a restaurant.[4]

Conclusion

So what do we know?

First, retail tenants and landlords do not agree on what their leases provide regarding the obligation to pay rent in the current situation. Second, in situations in which the parties understood that a retail tenant would not be able to operate its business, the parties agreed that tenant would not pay rent. Third, in the past when courts have considered situations in which a tenant was unable to operate its business in the leased space, courts have concluded tenant should not pay rent.

Today, retail tenants are not able to operate their businesses in the spaces they leased. Despite that fact, landlords are pressuring the tenants that cannot operate their businesses to pay rent. We will see what happens over the virtual (for the time being) negotiating tables and in virtual courtrooms across America.

The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm, its clients, or Portfolio Media Inc., or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.

[1] 2012 WL 2192284, at *11 (June 13, 2012, D. Or.).

[2] Heart v. East Tennessee Brewing Co. , 113 S.W. 364 (Tenn. 1908).

[3] 2000 Mass. App. Div. 200-02 (2000).

[4] Id. at 20102 (internal citation omitted).

For a reprint of this article, please contact reprints@law360.com.

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Anticipating The Pandemic's Impact On Retail Leases - Law360

Theres a new lighting collection coming to High Point Market next month KingsHaven and while the line may be new to the North Carolina home furnishings market, its founder/designer is not new to interior or product design. Over the past five years, Lauren Wylonis has immersed herself in the varied disciplines of interiors when it comes to creating beautiful home spaces designer, retailer, product designer and author. And thats after 15 years as a forensic psychiatrist.

When asked what inspired her transition to home design, Wylonis says, I really love art. Our homes are the art thats with us every way and every day. I feel lucky to be able to design spaces that influence peoples moods and positively affect how they live in their homes.

In her interior design career, and as outlined in her first book, At Home with KingsHaven, Wyloniss style incorporates both historic and contemporary design elements within the restoration and construction projects shes undertaken in and around Philadelphia including the Grantham Estate, which was designed by William Lightfoot Price in 1895; the Heydon Estate, which was designed by Bissell & Sinkler in 1929; and Agincourt, a new-construction home that was designed with the history of the area in mind. We got started in remodeling and designing historic homes first, she says.

In addition to the historic details, however, Wylonis is also considerate of her clients. I feel that mindfulness in design is really important. Designing with a sense of wellness is important for peoples mood and health every day, the former psychiatrist notes. We should be designing to reduce stress levels, not increase them. To ensure her customers love the homes she designs for them, Wylonis said she pays attention to whos going to live in the space and what their activities look like, and then tailors her design to create homes that allow her customers to be their happiest, healthiest, best selves in the space.

For Wylonis, good lighting goes a long way toward creating functional, comfortable spaces. Designing to a historic aesthetic but with modern conveniences, finding lighting proved challenging, so she began designing her own, mixing modern elements with tried-and-true materials and construction techniques.

I have a love of history and the craftsmen who have contributed to architecture and design for hundreds of years, Wylonis says. Appreciating the takeaways from years ago is important. I love the idea of stories in a home, particularly one of past lives. They contribute to a sense of depth and grounding for the people now living in that home.

While Wylonis will showcase her lighting in High Point this spring, her line of products extends into home decor as well, much of it focused on that blend of old and new. We do a number of products that are based on historic design lines, she notes. Well create a more transitional version of an antique fixture by streamlining it. You still get the distinctive lines of the architecture but maybe well use a warm LED bulb so its more energy efficient.

Where Wylonis and her product team dont improvise is in the quality of the craftsmanship and materials used in her home furnishings. The foundation of much of her product design revolves around iron and exotic woods, materials she says give the KingsHaven collection its texture. You really have a depth in those fixtures as part of the design of a room.

Wylonis says the company employs artisans from around the globe who are experts in their craft, be that basket weavers from the Darin Rainforest or blacksmiths from Ecuador. While the manufacture of KingsHaven designs are sourced in areas such as South America, finishing work is done in the United States, which gives Wylonis and her KingsHaven team the ability to customize based on customer requests. With 52 finishes and more than 70 different colors of glass that the company designs with, the possibilities for those interested in KingsHaven lighting are endless.

Currently, KingsHaven home furnishings are available through a few upscale retailers and the companys namesake retail/design emporium on the Philadelphia Main Line where Wylonis curates a selection of fine lighting, home accessories and furniture as well as on the companys website.

Coming this spring, KingsHaven will launch its lighting in theWoodbridge Furniture High Point showroom and is also opening a showroom in New York at the D&D building. Were trying to increase our visibility and accessibility to people who are interested in quality materials and workmanship, Wylonis says.

As for home design, that funnels through KingsHavens property companies, KingsHaven Properties and KingsHaven Design, as Wylonis concentrates on building the product side of the KingsHaven brand.

Original post:
Lauren Wylonis Shares the Inspiration Behind KingsHaven - Furniture Lighting & Decor

Glendale City Council is considering whether to annex an 865-acre property that would be the citys second-largest addition in 25 years, but several on Council have reservations about proposed plans for the property.

Glendale has already annexed 417 acres of property and if it continues plans with four properties going through the annexation process, that number will rise to 763 acres. But the 865-acre Allen Ranches property, which is west of Loop 303, bordered by Bethany Home Road to the north and Camelback Road to the south, would more than double that total to 1,628 acres or more than two and a half square miles.

Nearly all of the newly-annexed property or property under consideration for annexation is in Glendales New Frontier near the Loop 303. The 1,337-acre annexation added in 2017 for the Woolf Logistics Industrial Campus, east of Reems Road on either side of Olive Avenue, is the only property Glendales added since 1995 larger than the Allen Ranches property.

While City Council told staff to move forward with the annexation properties, as it did with all five properties it reviewed late last month, several on Council had reservations on adding Allen Ranches to the city.

Council members objections around the property were that it includes plans for a residential development, could have a higher density of homes than Council would like, and would create a city island community of residents surrounding mostly by county land, miles away from the city and from most city services.

Im just not sure that this is going to make long-run sense to the city, said Barrel District Councilman Bart Turner.

The Allen Ranches property plans to use 615 of its acres for industrial businesses and 250 acres for a housing development. City Council has largely prioritized businesses over homes in recent years when choosing which properties to annex because they bring in to the citys take revenue rather than drain it.

Also, much of the property in Glendales New Frontier are near Luke Air Force Base and therefore restricted by Luke Compatible Land Uses, an intergovernmental agreement between the county and cities near the base to determine what can and cant be near the base, namely due to noise from jets. Mostly, the Luke Compatible Land Uses restrict homes and high-traffic retail close to the base and prefer industrial warehouses where fewer people would be.

A noise contour line runs through the Allen Ranches property. This shows how much jet noise an area will receive and dictates which land uses can exist in an area. The land owner plans to use the entire area west of the 65-decibel designation line to build homes, because there are no land-use restrictions west of that line.

Under its current zoning, the land outside of that noise contour line is approved for 2.5 homes per acre, but some on Council thought that was too dense.

I think this is one case where being relatively close to Luke, they should stick with low density at 2.5 (units) to the acre, said Yucca District Councilwoman Joyce Clark.

Ms. Clark and some others on Council didnt like the idea of adding any homes to the city.

Councils goal is to encourage and promote job opportunities in our New Frontier. I am not pleased to see this applicant come in with a mix of industrial and residential, she said.

Ms. Clark asked staff to explore the option of adding only the industrial portion of the Allen Ranches property and excluding the residential portion.

Vice Mayor Ray Malnar of the Sahuaro District, said hes not opposed to their being residential property as part of the annexation but agreed with Ms. Clark that a lower density would be better for the area.

When land is annexed into Glendale, by law its zoning transfers to the Glendale zoning designation that most closely matches what its zoning was under the county. Cholla District Councilwoman Lauren Tolmachoff noted that Allen Ranches already has the authority to a 2.5-home-per-acre density under the county. The property is seeking a rezone to create a Planned Area Development, but would most likely not agree to change to a lower housing density, Ms. Tolmachoff said.

Mr. Turner noted that while the housing development would pay for all of its internal roads, when it was time for those roads to be maintained, that cost would fall on Glendale taxpayers.

Ms. Tolmachoff also said she was concerned about the annexation because she was not excited about taking in the residential property.

Were having enough of a difficult time with our pavement management without bringing in more responsibility where were essentially going to be getting one-time money out here with the industrial, Ms. Tolmachoff said, while calling into the March 24 meeting.

City Manager Kevin Phelps noted that this property does not need to be annexed into the city. The developer can build the planned warehouses and homes while remaining under county jurisdiction. Mr. Phelps noted that in this case, Council would lose any control over the housing development and it could theoretically get approval from the county to add density or to switch to land uses that Glendale wouldnt like.

Mr. Phelps also pointed to the things the property would add to the city that Council does prioritize a lot of industrial businesses.

When you have a situation like that, sometimes theres a little bit of you get to have 100% of what youre looking for, Mr. Phelps said. What Ill tell you is this: this is our single largest proposed density of industrial/manufactural/commercial space on the entire Loop 303. The developers have proposed 11 million square feet of commercial development and theyve also included a willingness to do a fair amount of construction before having tenants lined up. And thats somewhat unique as well.

Mr. Phelps also noted that the proposed housing development, on the Allen Ranches western edge, would create a buffer to the existing housing development on county land to the west.

Lastly, Mr. Turner and Ms. Tolmachoff raised concerns over creating a city island of homes. Glendale is rapidly annexing land in the area, but there has been no residential property.

Youre going to be generating 3,000 residents, probably at least, maybe more, that are completely detached from the city public safety and city services, Ms. Tolmachoff said. So, Im not excited about the residential either.

Mr. Malnar asked staff to study and report back on the positives and negatives that such a city island would create for those residents.

Does it really matter?, he asked. Does it just provide a different type of lifestyle for people to be away from the city a little bit further, and is it going to really cause any problems with the rest of the citizens in the city?

The next steps for Allen Ranches and all under properties under consideration is for a blank petition to come before City Council before it is sent out to property owners on the land up for annexation to sign. A 30-day waiting period must be observed before the signatures can be collected. Then City Council would vote on whether to annex the property.

Link:
Glendale Council unsure whether to annex 865-acre property - Your Valley

According to The Architectural Team's (TAT) experts, these five stories will play out through 2020 and will endure through the decade.

As we enter the new decade, our designers and clients alike see a growing emphasis on projects intended to keep neighbourhoods affordable, and an interest in both time-tested and new design solutions to address housing shortages. We also anticipate important milestones for major projects transforming urban cores, a renewed resurgence in smaller cities, and foward-thinking approaches to resilient waterfront developments.

In growing cities nationwide, the displacement of longtime residents has emerged as a majorconcern.

To keep neighborhoods affordable and accessible were working with developers, non-profits, and public officials to expand or redevelop existing affordable and workforce housing developments, adding more residential units while preserving affordability and dramatically enhancing livability.

As an example, Jay Szymanski, AIA, NCARB, LEED AP points to TAT's redevelopment of one of the country's oldest public housing communities, South Boston's The Anne M. LynchHomes at Old Colony. Work is now underway to add a further 301 apartments to the 285residences built since 2011, which replaced midcentury superblocks with a series of attractive mid-rise buildings and townhomes. In nearby Roxbury, the firms redevelopment of the 1950s-era Whittier Street Apartments created a new amenity rich, mixed-income, transit-oriented multifamily campus with 210 affordable units out of 386 total, and an emphasis on outdoor community space.

Other soon-to-open projects will serve specific populations that often struggle to find housingand support. TATs 102 unit Residences at Brighton Marine, for instance, is leasing witha dedicated focus on veterans and their families, and offers 86 affordable homes including anumber of apartments set aside for formerly homeless veterans.

Faced with a persistent shortage in housing supply across the US, architects and developers are responding with solutions that demonstrate the continued value of adaptive reuse, and the benefits of new approaches including prefabricated and modular construction.

Across the northeast, TAT is reactivating formerly vacant or underutilized structures as newhousing. In Attleboro, Massachusetts, the firm has converted a historic jewelry factory into 93 units of senior housing called Sterling Lofts, offering important rental options for the states rapidly growing over-60 population.

At Bostons Ropewalk, a previously vacant landmark rope factory will soon offer 97 rentalapartments, the sixth historic residential conversion by TAT within the Charlestown NavyYard redevelopment. In Boston's South End, 100 Shawmut maximizes the potential of its siteby adding a seven story contemporary addition to a historic warehouse, for a total of 138 new condominium units.

Integrating adaptive reuse and new construction is a great way to address housing shortages while respecting a neighborhoods character. Were able to create value for the community by preserving historic fabric and looking to the future at the same time.

Other cities are exploring highly efficient approaches to infill development, includingprefabricated construction. In Quincy, Massachusetts, TAT is transforming a parking lot into a15 story, 124 unit tower called Chestnut Place, where locally fabricated modules havedramatically increased speed to market for these much-needed homes.

With new air rights developments, hotel towers, and uniquely positioned residential properties, many urban cores are set for major transformations in 2020 as closely watched and long-awaited projects reach major milestones.

For example, one of Bostons biggest real estate stories in a generation, Fenway Center, willsoon cross a watershed moment with its first phase approaching completion and its secondphase on track to kick off this year. TATs design for this 1.3 million-square-foot air rightscomplex adds housing, commercial office space, and retail uses while decking over a majorhighway and reconnecting three neighborhoods with new green space, public art, andpedestrian and transit connections. The first phase, Bower, offers 312 apartments, 37,000ft of retail, and 12,000ft of public open space.

A hotel boom continues, too, with one of the northeast's most eagerly anticipated mixed usetowers, the Raffles Boston Back Bay Hotel & Residences, designed by TAT for theprestigious international hospitality group and developer Trinity Stuart LLC. After a fall 2018groundbreaking, the 33 story high-rise is now under construction, transforming a prime corner site into a regional destination as the first Raffles property in the United States.

Design teams are also unlocking new opportunities in dense, built-up areas where large sites are hard to find. In Bostons historic Beacon Hill neighborhood, TAT's Archer Residences reimagines two six story former university buildings as a single, 172,000ft residential property topped off with a pair of contemporary penthouse additions and a sweeping landscaped roof terrace.

Identified by commercial real estate services group Commercial Caf as one of thecountrys fastest-growing Rust Belt cities, Rochester, NY is on a path towards a new era ofsuccess. One of the linchpins of this recovery is Sibley Square, the TAT-designedconversion of a 1-million-square-foot former downtown department store into housing, acommunity marketplace, and high-tech workplace environments. A major indoor market is set to open within the phased, WinnDevelopment-led project this year.

Smaller gateway cities like Worcester, MA, are on the upswing too, thanks to projectslike Courthouse Lofts, TAT's conversion of the historic Worcester County Courthouse into117 units of housing. Nearing completion, the Trinity Financial-led property also holds a first-in-the-nation museum celebrating local icon and pioneering African-American cyclist Major Taylor.

Increasingly vulnerable, flood-prone urban waterfronts remain desirable sites for newresidential and mixed use development. Forward-thinking design teams are taking a holistic approach to these projects, employing hard and soft approaches to shoreline design, strategic landscaping, and elevated public use areas. The result? Properties that can absorb storm surges while enhancing the public realm and long-term viability.

TATs recently opened Clippership Wharf, a 12 acre, 478 unit mixed use complexdeveloped by Lendlease in East Boston, has garnered national attention for this approach,which also offers residents and community members access to a harborwalk, beachfront area and floating dock with a kayak launch.

Link:
The Architectural Team unveil the five main values coming in 2020 - World Architecture News

CALGARY -- Some of Calgarys construction job sites are carrying on through the pandemic, but many have taken drastic measures to ensure safety.

"Definitely a lot more attention to cleanliness," said construction worker Eric Woodcock.

"Usually trades, were Neanderthals, basically all of us, theres a lot more hand sanitizing, more wash basins. We put in multiple sinks and have done what we can to get our hands on as much hand sanitization as possible."

Woodcock is working at a construction site building retail and condo buildings in the northeast.

He said construction can be tricky to navigate social distancing, but they want to keep their jobs.

"Anyone who knows this nature of this beast here, its impossible to do some things that far apart but anything physically possible were maintaining at least two metres at all times, the best we can obviously," said Woodcock.

The Calgary Construction Association said a new pandemic protocol document has been created to help companies deal with new safety measures to protect against COVID-19.

"The document we started creating was really the beginning of our effort to help the whole industry understand the safety as it related to COVID," said president Bill Black.

"Youre changing the engine of the train while the train is running to implement new standards."

Black said the document comes with guidelines companies big and small can take to ensure worker safety.

"Construction is an inherently dangerous business," said Black.

"We deal with safety everyday and safety is a profession within our industry. It is designed, enforced, monitored and measured on a daily basis."

Black suggests many companies have already come up with ideas and protocols to ensure physical distancing and sanitizing.

"Take meetings outdoors, dont have them in enclosed spaces where the space can be more readily utilized for distancing," said Black.

"Limit the size of meetings. In some sites workers are eating lunch in their vehicles alone rather than together, managing gathering points."

For Woodcock, he said there are fewer people on the job site.

"Were keeping our site numbers low, like the man count, but attached to everyone of these companies, theres an office full of people," said Woodcock.

"Just one site alone, it's hundreds of jobs."

As for any potential of spreading coronavirus, Woodcock said workers are taking different measures than usual.

"We come here and do our job, which is unfortunately in the world right now, unique, were in the minority there," he said.

"The main difference is when you leave site, you go home. You dont go the store, you cant go out for dinner, you go home, clean yourself the best you can and hopefully see your family."

The province says Occupational Health and Safety has conducted 165 inspections within the construction sector since March 15. None have been specific to COVID-19 related hazards.

"Recent inspections have taken an education and awareness focus to COVID-19 hazards, specifically social distancing, personal protective equipment and sanitization and cleaning practices," said spokesperson Adrienne South in a statement.

Read the original post:
Calgary construction workers plugging away through pandemic - CTV News