News

Weitz Highlights the Senior Living Construction Cost Trends from 2004-2016

The American Senior Housing Association (ASHA) and leading national construction firm The Weitz Company have published a special issue brief illustrating Seniors Housing Construction Cost trends from 2004 to 2016, including the effect of the recession on Seniors Housing construction costs.

Through the mid-2000s, the market experienced higher than normal levels of construction-related inflation. As the financial crisis began in August 2008, markets began to falter and major financial institutions collapsed. The construction market was not insulated from these events and experienced its worst decline since The Great Depression.

Many companies went out of business, some survived but were, in many cases, half the size they were prior to the downturn. General contractors, subcontractors, designers, and engineering firms were all affected. The market as a whole experienced several years of declining prices through the end of 2010 before beginning to climb out of the trough.

As we fast forward to today, we see construction costs reaching pre-recession levels, with moderate to high inflation over the past five years. The current pace of construction, including increasing labor rates, leads us to expect this trend to continue in the near term.

Highlights of Senior Living Construction Cost Trends


Weitz Releases Mid-Year Senior Living Construction Cost Data

The American Senior Housing Association (ASHA) and leading national construction firm The Weitz Company have published the results of their bi-annual Senior Housing Construction Cost Data Special Issue Brief.

The tight labor market continues to evolve into a top-tier issue for several markets, causing higher than expected cost escalation for current projects and especially those which are near commencement.  The need for labor is resulting in companies challenged with keeping good employees and preventing defections to the competition.  Skilled labor/trades are seeing the highest incidence of this and companies need to be mindful in maintaining their core staff.  The number of new, young workers entering the trades are not keeping pace with the aging workforce that is advancing through the ranks or leaving the trades altogether.  The overall impact is not only cost but a real potential for a slowing of schedules and firms trying to do more with less.  The expectation is for these cost escalations to continue creeping upward at a higher than normal rate over the next 9 – 12 months based on current data.

About the CCRC and Senior Housing Construction Cost Data Special Issue Brief  

The bi-annual CCRC and Senior Housing Construction Cost Data Special Issue Brief is released every Summer and Winter, and is based on nation-wide data of senior living projects under construction or completed by The Weitz Company. Costs are full burden and include general conditions, insurance, tax, bond and fee, but exclude site construction costs. The costs are based on a city index of 100. Each city carries a different index. These indices, coupled with local market conditions, are essential when comparing overall pricing.

senior living construction cost data

 

 

 

 

 

 

 

 

*Full Burden: Costs are full burden and include general conditions, insurance, tax, bond and fee, but exclude site construction costs. The above costs are based on a city index of 100. Each city carries a different index, for example: Gainesville, FL has an index of 85.7 which translates to a cost range of $110 – $141 per sf for Independent Living; Chicago, IL has an Index of 117.6 which translates to a cost range of $150 – $194 per sf for Independent Living. These indices coupled with local market conditions are essential when comparing overall pricing.

Mid-Level: Generally wood-framed with standard amenities and finishes, typically targeting the moderate income senior.

High-Level: Generally steel or concrete construction with high-end finishes and luxury amenities, typically targeting the higher income senior

 


Tips & Tricks for Boosting Your Project ROI

food automation

Click image to watch video!

Understanding your company’s ROI is key to growing your business.

During the Food Automation & Manufacturing Expo 2016 hosted by Food Engineering, Matthew Chang, PE breaks down the partnership between engineering and finance, explains the finance basics of ROI and provides guidelines for large capital projects utilizing labor, logistics and savings data to drive efficient site selection.

Click the image to the left to watch the webinar session to increase your competitive edge in the food industry.


Sun Safety Tips with Safety Manager, Norm Sunderman

 

Safety Manager

Safety Manager

When you’re spending time outdoors in the sun your body will naturally cool itself by sweating. However, during the hot weather sweating isn’t enough, especially when dealing with high humidity.  Heat related illnesses can occur if you’ve been exposed to the sun for too long and are often accompanied by dehydration.  Some symptoms can include heat exhaustion and stroke, seizures, confusion, disorientation, loss of consciousness, and even death.

Safety is the highest priority at Weitz and keeping employees protected is always at the top of mind during the hot weather months.

“One of the most important steps Weitz takes is to have a hot/severe weather plan in place,” said Norm Sunderman, Weitz Safety Manager, “On the jobsites we provide water that’s readily available, tinted safety eyewear, areas where employees can cool down, break trailers, shaded areas and an increase in the number of breaks. If the job allows we also try to start earlier in the morning when it’s the coolest time of the day.”

Read Norm’s sun protection safety tips in the following graphic:

safety

 


Weitz Supports, Encourages Women in Construction

Samantha Pinkal Business Development Manager

             Samantha Pinkal

Samantha Pinkal, Business Development Manager at The Weitz Company’s Phoenix office, was recently interviewed for an article in the July/August issue of AZRE which addresses the role and wages of women’s in the commercial real estate industry. Samantha shared her personally and professional journey from her early years as a girl scout member receiving an award for constructing a gazebo to earning a degree in construction management to joining Weitz as a Project Engineer in 2006. Since then, Sam has steadily accelerated her way up the organization and credits Weitz’s leadership who provide an inclusive environment with opportunities to learn, lead, and have fun. Sam states, “The leaders of our industry should be actively encouraging their female employees to seek leadership positions and provide them with the resources they need to do so… I know my career would have been very different had I not had a mentor and a champion for me at Weitz.”

Check out the full article on AZRE in which Samantha and others share their thoughts about women in construction.