The retail sector is lagging behind the pack in green building, according to The U.S. Green Building Council. They report that LEED project certifications for green buildings overall were up 67% from 2005 to 2006. But of the more than 800 LEED certified projects to-date, only 50 retail projects have been certified.

The key issue is real cost vs. spec benefits. Developers would pay more for green features and may not be able to recoup those costs in higher rents or faster lease-up. Still, the number of large retailers announcing green building initiatives has accelerated in 2007 and should peak in 2008-2009.
For more on the factors driving the green retail market, see Greening the Retail Sector in Building Design + Construction.

Building Design + Construction

A survey of mayors across the United States shows that most cities are adopting policies to encourage sustainable construction and energy efficiency in municipal buildings. The survey results were released at the 75th anniversary meeting of the U.S. Conference of Mayors held in June.

The City of St. Louis is keeping pace, according to Mayor Francis Slay’s office.

“We have an ordinance which requires that all newly constructed buildings meet LEED Silver standards,” Barbara Geisman, the City’s deputy mayor for development, told AEC St. Louis.

The St. Louis ordinance also requires that LEED principles be included in LEED-New Construction, and that LEED-Commercial Interiors and LEED-Existing Buildings principles be applied during retrofit and renovation projects of current standing facilities, whenever practicable. Sponsored by Alderman Fred Wessels, the ordinance was signed into law by Mayor Francis Slay in 2006.

Three St. Louis public buildings currently under development that will meet at least LEED Silver standards include two new recreation centers and the Animal House, one of the first “green building” animal shelters in the nation. The Lambert-St. Louis airport renovations will incorporate LEED principles for existing buildings wherever possible, according to the Mayor’s office.

Nationwide, nearly nine in 10 of the cities require that new city government buildings be more energy efficient and environmentally sustainable, or anticipate making that requirement in the next year. Ninety seven percent are using more energy-efficient lighting in public buildings, streetlights, parks, traffic signals, or expect to by next year.

Cold weather and the housing slowdown put a damper on nationwide construction jobs in February according to the Associated General Contractors of America, but nonresidential segments should rebound this month.  February included a week of ice storms across much of the U.S. whereas January had an exceptionally balmy week.  As a result, some contractors may have started jobs in January that normally would have been postponed until later in the spring, then postponed hiring during the freeze.  One sign that nonresidential construction will resume growth is the fact that architectural and engineering firms have seen a 5 percent increase in job growth over the past year, and their work turns into construction within a few months.  Meanwhile, nonresidential construction spending is up 15 percent over last January.  The AGC concludes that nonresidential construction will be healthy through 2007, and probably beyond.

Fees for construction management and program management services increased from 5% of a typical project in 2000 to 5.7% in 2007, according to a recent Construction Management Association of America survey. During the same period, operating income for CM/PM firms dropped, showing that costs rose more quickly than fee income. Healthcare and education sectors offered the lowest media feeds while highway and bridge construction offered the highest. The survey cited a tightening labor market, aging workforce and aging infrastructure as factors leading to a growing reliance on outsourced CM/PM services.

While residential construction fell two percent last year, private commercial construction went up 16 percent and public construction 10 percent, according to the US Census Bureau. The Christian Science Monitor’s Ron Scherer reports that new hotel construction was up 52 percent over 2005, factory construction 20 percent and office building rose 18 percent. Commercial construction has even absorbed many residential construction workers. Last month, 80,000 jobs were lost in residential construction while commercial contractors hired 180,000 workers.

Expansion Magazine has released their ninth annual “America’s 50 Hottest Cities” list and St. Louis made the cut. Cities were listed alphabetically, not in rank order.

The list is based strictly on perceptions rather than cold, hard data, according to managing editor Ken Krizner. The publication polled 80 prominent site location consultants on their choices for the nation’s best cities for expanding and relocating companies. Consultants ranked metro areas according to business environment, work force quality, operating costs, incentive programs, work force training programs, and the ease of working with the local political and economic development community.

All 362 Metropolitan Statistical Areas were considered, so the cities that make America’s 50 Hottest Cities are in the top 14 percent of all U.S. metro markets. In the eyes of premier site location consultants, these metro areas are top choice.

The St. Louis MSA includes the City of St. Louis, St. Louis County, the Missouri counties of Saint Charles, Jefferson, Franklin, Lincoln and Warren, and the Illinois counties of Madison, Saint Clair, Clinton, Monroe and Jersey.

Reference: Expansion Magazine Online