Sunday, December 8, 2019

Sunday N Test 1

Dispensary Interior Seating Area

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Dispensary Interior Seating Area

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from Hard Hat Chat http://commercialconstructionblog.com/blog-test-published-test/
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Tuesday, December 3, 2019

Commercial Construction Industry Trends: The “Highs” and “Lows” that Shaped 2019

RECon 2019 Las Vegas cocktail party

With the countdown on to 2020 – and the start of a brand-new decade right around the corner – it’s time for our annual look back at the commercial construction industry “highs” and “lows” from 2019. From positive trends and new business opportunities to ongoing challenges that impact how we do business, here are five factors and industry trends that shaped our work in the past year.

High – Growing Opportunities in the Cannabis Sector

Dispensary Interior Seating Area
A ‘high’ for Englewood Construction in 2019 was a growing number of opportunities to work with cannabis firms on dispensary and cultivation facility projects.

Pardon the pun, but the biggest “high” for Englewood Construction in 2019 was our ever-expanding portfolio of projects working with cannabis firms on facility needs for growing, storing and dispensing product. Having now partnered with a number of clients on dispensary and cultivation facilities in different states, we’ve become well-versed in navigating the specific considerations that come with these projects – from the learning curve in the local permitting and approval process as municipalities put state-level legislation into action for the first time, to the timing nuances of working with cannabis firms to move their facility plans forward even as they await licensing. We’ve also translated our experience in working with restaurant and retail brands on national rollouts to new partnerships with major cannabis players who are expanding in multiple markets simultaneously.   

It’s been exciting to see the opportunities that have come with the growth of the cannabis industry. And with recreational marijuana now legal in 11 states and Washington D.C. – and more states set to vote on legalization in 2020 – we see the cannabis space as a quickly growing CRE niche that is poised to be the next big wave of boutique retail expansion nationally.

Low – Subcontractors Still Struggle for Manpower

I probably sound like a broken record at this point, but the ongoing commercial construction labor shortage – which we’ve been talking about for several years now – continued to impact our projects in 2019. The hard truth is most subcontractors have more work coming their way than they are staffed to handle, regardless of their trade or market. And since they are operating at capacity, subs can charge premium pricing and be choosy about the jobs they take, which directly impacts commercial construction budgeting as well as scheduling.

On the upside, the reason we’re feeling the effects of the manpower shortage is because there’s a truly robust construction pipeline out there. Even as the labor situation improves, it’s being outpaced by a high commercial construction activity level across the country. While those dynamics certainly pose challenges, it’s always a positive when there’s plenty of work out there for us to chase.

High – CRE Cross Pollinates

RECon 2019 Las Vegas cocktail party
At RECon 2019 in Las Vegas, where Englewood hosted a cocktail party, CRE professionals were thinking more openly about commercial property uses.

It’s been interesting in the last year to see CRE landlords thinking differently and more openly about property use. One place our team noticed this was while attending this year’s International Council of Shopping Centers’ RECon Expo in Las Vegas. In the past, RECon was pretty much dominated by retail, with just a smattering of reps from restaurant and other sectors. But this year, ‘inclusion’ seemed to be the name of the game, with ICSC and RECon reaching out to other sectors that are leasing mall space and focusing much more on hospitality, restaurant and entertainment. This receptiveness to other uses for commercial properties is indicative of the CRE industry as a whole, with more and more owners and developers thinking creatively and intentionally diversifying their mix of tenants to create a vibrant environment at commercial developments.

Low – Online and Bricks and Mortar Duke it Out

Over in the retail sector, online brands are continuing to beat up bricks and mortar companies. Online is holding onto the upper hand in that competition, and in 2019 we saw even more major brands shuttering and leaving behind vacant retail space.

But, the retail market is trying to right itself to a certain degree. Online and bricks-and-mortar brands alike are discovering the happy medium between e-commerce and in-store experiences: there are some products consumers are perfectly happy buying or replenishing online, but there are still things they want to touch, feel and shop for in a physical store.

This all feeds into the ongoing evolution of the retail sector. While shopping centers are focusing more on hospitality, restaurant and entertainment offerings to revitalize the mall experience and fill empty storefronts, we’re seeing more clicks-to-bricks momentum – and more construction activity from traditionally online-only brands – as e-tailers see the value of having some form of physical location. 

High – Celebrating 10 years of Hard Hat Chat

Back in September, we celebrated the 10th anniversary of Hard Hat Chat and took a look back at some of the topics we’ve discussed over the years. The fact that we’ve continued to find plenty to write about each month – with 149 published posts and counting – speaks volumes about the depth and complexity of the commercial construction industry and how it continues to evolve. As we look ahead to starting a new decade in 2020, we know there will be no shortage of commercial construction news, trends, insights and ideas to share with you, our Hard Hat Chat readers.

On that note, be sure to check back with us in December as we wrap up 2019 with a post sharing the trends and insights our team heard about while attending the International Council of Shopping Centers’ annual CenterBuild Conference.

If you want to talk more, contact me here

Chuck Taylor, Director of Operations
Tel: 847-233-9200 x712

Questions? Comments?
You can reach me at CTaylor@eci.build
www.EnglewoodConstruction.com



from Hard Hat Chat http://commercialconstructionblog.com/commercial-construction-industry-trends-the-highs-and-lows-that-shaped-2019/
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Monday, October 28, 2019

Flagship Store Retail Construction: 3 Reasons Brands Still Build in a Flagship Location

With our firm’s long track record in retail construction, we’ve witnessed firsthand the ebb and flow of activity across this sector over the years. So when I came across an article recently asking if  “flagship stores are losing their shine”, it gave me pause.

It’s true the retail mix among flagship stores in prime locations is changing. Not too long ago, premier shopping districts like Chicago’s Magnificent Mile or New York’s Fifth Avenue were lined with not only luxury brands like Tiffany, Cartier and Ferragamo, but also large-scale versions of mall stores, from Gap and Ann Taylor to Eddie Bauer. Today, many of those traditional mall retailers have closed their flagships.

Instead, we are seeing new players setting up shop in these spaces – like the mega four-story Starbucks roastery set to open along the Mag Mile next month. This goes to show that while the brands undertaking flagship construction projects might be changing, the appeal of these locations holds true. Here are three reasons our clients decide to create a flagship presence: 

1. To Introduce New Concepts

When it comes to debuting new concepts, a flagship store can be a smart strategy for introducing the business model to consumers. One of the most high-profile examples of this was when Apple unveiled its Apple Store in the early 2000s. Today, these stores are as ubiquitous as mainstream apparel brands, but at the time they were a novel retail experience. Apple’s first flagship store was in Chicago on Michigan Avenue, where tourists and locals alike quickly became familiar with – and grew to love – the unique environment it offered to interact with the brand’s latest products. 

A more recent example of this was speculation in Chicago about cannabis operators scouting space for dispensary locations on the Mag Mile in advance of recreational marijuana being legalized in Illinois as of Jan. 1, 2020. Ultimately, proposed municipal guidelines and zoning rules for recreational marijuana sales in the city of Chicago will probably prohibit a dispensary on the Mag Mile, but it made sense that cannabis firms initially set their sights on a high-traffic, high-profile location where they can engage with a large number of consumers and introduce them to their store format and product.

2. To Market a Brand

For some brands, opening a flagship location is as much about marketing as it is about sales. One way we have seen clients successfully leverage the marketing power of a high-profile flagship space is to signal their arrival in a new market – especially foreign brands making their debut in the U.S. For example, when our client Zara, a Spanish fashion brand, first came to the states, it immediately opened flagship locations on Fifth Avenue in New York and Michigan Avenue in Chicago – a store Englewood built out – before it opened stores in more traditional shopping malls. These first locations served as an announcement of Zara’s presence, and started building buzz and brand awareness from day one.

Spanish retailer Zara on Michigan Avenue
Spanish retailer Zara used flagship stores like its Michigan Avenue location, built by Englewood, to introduce itself in the U.S.

On another marketing note, many cell phone carriers now have flagship stores in premier retail districts across the country. Besides being an opportunity for consumers to check out the newest phones and gadgets, these stores, with their multi-story presence and prominent signage, also put brands front and center with huge levels of daily foot and car traffic.

3. To Create an Experience

One of the original functions of a flagship store that still holds true today is that they are an excellent way to immerse a customer in a brand experience. A quintessential example of this is our long-time client American Girl. Our very first project with the brand was to relocate its original Chicago flagship store to Michigan Avenue in 2008. Since then we’ve built and/or renovated all of the American Girl Place stores across the country, including the brand’s recently reimagined New York City location at 75 Rockefeller Plaza. Each of these stores goes well beyond straightforward shopping to also give children an opportunity to connect with the brand on a deeper level – from an American Girl Salon experience with services for dolls and customers alike, to an interactive Create Your Own Design Studio and even an American Girl Café where kids can dine with their dolls.

The experiential factor of a retail location is something we see reinvented time and again as brands seek new ways for customers to connect with their products, from the Levi’s flagship store in New York’s Time’s Square offering on-site tailors to add custom trim and patches to customers’ blue jeans, to the new Michigan Avenue Starbucks that will have interactive tours and onsite roasting that will let coffee aficionados strengthen their relationship with the Seattle-based brand.

The Future of Flagships

Thinking about the future of flagship retail, we’re seeing clients consider them in new ways. We’ve worked with clients to investigate bringing recreational concepts such as a climbing gym to these locations, and we’re also hearing about more value-based brands, such as Bloomingdale’s Outlets, interested in these high-profile sites. Like every other niche of the retail sector, the flagship store landscape is evolving, and we’re sure to see many more creative interpretations of how to best utilize these spaces.

Chuck Taylor, Director of Operations
Tel: 847-233-9200 x712

Questions? Comments?
You can reach me at CTaylor@eci.build
www.EnglewoodConstruction.com



from Hard Hat Chat http://commercialconstructionblog.com/flagship-store-construction-3-reasons-brands-still-build-in-a-flagship-location/
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Wednesday, September 11, 2019

Happy Anniversary Hard Hat Chat: Celebrating 10 Years of Commercial Construction Trends, News, Insights, and Conversation

In 2009, amid the business challenges of the Great Recession, our company made the decision to start a blog as an outlet to share commercial construction trends, insights, news, and observations on a variety of topics. If you had told me then that we’d still be publishing Hard Hat Chat a decade later – and that it would become an award-winning blog – I probably wouldn’t have believed you. But here we are, with 147 blog posts under our belt, celebrating Hard Hat Chat’s 10th anniversary.

In light of this milestone, I looked back at some of our earlier posts. And you know what I found? We got it wrong…well, kinda. In one of our first posts, we talked about how the commercial construction industry hasn’t changed that much. But after reading through 10 years of blog posts, I realized it has changed – and so has Englewood Construction. Here’s what stood out to me:

AG Chicago Michigan Ave exterior
Englewood’s retail portfolio includes experiential concepts such as American Girl Place in Chicago.

The Retail Evolution: Shopping Mall, Flagship Store & Big Box Construction
The past decade brought more ups and downs for the retail sector than the escalators we installed in malls. Just like how retail brands and CRE owners and developers learned to evolve with the shifting landscape, we also adjusted our business. Our firm’s roots may be in traditional mall tenant build-outs, but over these 10 years we’ve expanded to other retail work — from ground-up big box construction to experiential flagship stores. Yet, I did get a sense of déjà vu when reading this 2009 post, Is The Baby Being Thrown Out With The Bathwater In Big Box Construction, which discussed how the shuttering of big box space brands like Circuit City and Linens ‘N Things were creating an opportunity for those stores to be repurposed. Switch out the store names to Toys R Us and Sears, and it’s the same conversation we’re having about the retail sector today!

Riding the Silver Tsunami: Senior Housing Construction
In the decade we’ve been publishing Hard Hat Chat, the Baby Boomer generation has created an unprecedented demand for senior living options. Looking back to when we dipped our toes into senior housing construction, our blog posts focused on remodeling work at existing facilities. Today, echoing the continued demand in the senior housing sector, we’re seeing even more activity and opportunities with senior living developers and operators – from adaptive reuse projects to ground-up development.

Siena Hills Senior LifestylesMemory Care Unit Henderson NV
In 2016, Hard Hat Chat discussed how to keep residents happy during a senior housing renovation.

A Menu of Success: Restaurant Construction
When it comes to restaurants, we’ve seen – and built – it all, from the fast-casual brands that were booming during the economic downturn to, more recently, unique experiential concepts that are as much an entertainment destination as a restaurant. While the restaurant concepts we work on have become more complex, the same basic principles still hold true for restaurant construction success – delivering projects on time and on budget will always be a priority for our clients.

Museum Construction
The Harry Caray’s 7th Inning Stretch and Chicago Sports Museum Englewood built in Chicago serves up an entertainment experience.

An Ounce of Prevention
One thing we didn’t see coming in the early days of Hard Hat Chat was the booming demand we would have from clients for facility maintenance services. What started off as a couple of small favors for clients who needed help with minor facility maintenance projects has blossomed into a pretty substantial part of our business that today offers planned, preventative and emergency facility maintenance. And if you’re a frequent reader of this blog, then you know our clients think it makes a lot of sense to partner with the general contractor that constructed their facility to maintain it, too.

CRE Trends: Green Rush Ahead?
Of course, this industry will only continue to evolve as brand-new opportunities drive activity in commercial real estate. We touched on one of the newest CRE trends impacting our industry in our last blog post – how the legalization of recreational marijuana could create the next big national wave of boutique retail expansion. As we do with any new client or sector we work with, we’re taking a deep dive into the nuances of the cannabis industry and applying our experiences and insights from states where legalized recreational marijuana is old hat to the needs of clients who are entering this new territory. Stay tuned to our blog for even more updates on this “high”ly engaging topic.

Dispensary interior with chairs
Recreational marijuana dispensaries could drive a wave of boutique retail expansion.

So while re-reading our past 100 Hard Hat Chat blog posts did remind me of the many changes we’ve gone through, there is one thing that’s remained constant over the last 10 years, and that’s the relationships that are so important to the business we do every day – whether with our clients, our employees, our subcontractors or other service providers. It’s a theme that pops up over and over again in a decade’s worth of blog posts: the people we work with every day are the foundation of this company. We’re grateful for all of them, just as we’re grateful for everyone who’s been a faithful Hard Hat Chat reader over the years. Thank you for reading, and here’s to the next 10 years!

Chuck Taylor, Director of Operations
Tel: 847-233-9200 x712

Questions? Comments?
You can reach me at CTaylor@eci.build
www.EnglewoodConstruction.com



from Hard Hat Chat http://commercialconstructionblog.com/hard-hat-chat-10-years-of-commercial-construction-trends-news-insights-observations/
via Hard Hat Chat

Wednesday, August 7, 2019

Legalized Marijuana: Opportunities and Impact for Commercial Real Estate and Construction

A version of this post was published in Illinois Real Estate Journal as a byline article from Englewood Construction.

Earlier this summer, Englewood Construction’s home state of Illinois passed a bill making it the 11th state in the U.S. to legalize the use of recreational marijuana. Given that our firm already has experience working with clients on medicinal and recreational marijuana dispensary construction projects in other states, we know firsthand that this legislation will quickly lead to new activity in the local commercial real estate and construction landscape. In fact, we are currently in discussions with clients about cannabis-related projects in Illinois.

Like any CRE sector, the cannabis industry comes with its own set of nuances for planning and executing construction projects – particularly since it is relatively new and highly regulated. Here are our top five tips for successfully navigating this arena, based on our experience with clients active in the business:

1. Think Nationally, Build Locally

As more states adopt laws legalizing recreational weed, marijuana companies are looking to get licensing and mobilize in those states quickly. Because of the staggered geography and timing at play, cannabis firms are realizing the advantages in hiring a national commercial construction partner with the capacity and resources to partner with them on multiple facility projects across the country — as well as expertise in understanding and adapting to differences in regulations and requirements in each local market.

This is similar to the national rollouts Englewood has worked on with retail and restaurant brands, where there’s real value for our clients in tapping one construction partner that understands their business in and out, can replicate their concept wherever they are opening new locations, and has a roster of pre-qualified subcontractors nationwide to bring a project to fruition. Plus, having worked in many states and major cities, we’re familiar with the local construction landscape and can help anticipate regional considerations for labor, permitting and approvals. All of this means the construction end of opening new locations becomes a well-oiled process – a level of efficiency that is equally beneficial to marijuana companies entering multiple new states.   

2. Timing Is Everything

Englewood is no stranger to hitting a firm opening date for a new location, which is critical for cannabis companies opening in new markets. First of all, the time frame for leasing and building out a space – whether a dispensary or cultivation facility – is often dictated by when new laws around marijuana usage go into effect.

Take Illinois, where recreational marijuana dispensaries can open for business as of January 1, 2020. That means companies that want to be among the first to open in the market need to start now to not only get licensed, but also negotiate lease deals, enlist their construction partner and start building out their facility.

Timing also comes into play because if a marijuana company does not complete its facility by its scheduled date, it stands to lose its state license – potentially an investment of several million dollars. As an example, Englewood was just asked to take over a dispensary build-out project in Ohio because the original contractor fell behind, leaving the operator in danger of losing its license. This underscores the importance of hiring a seasoned general contractor that not only has a proven track record completing jobs on schedule, but also a strong network of reliable subcontractor resources that can be counted on to meet the project timeline.

3. Learning Curve for Municipalities

As states adopt new laws around the cannabis industry, there is certain to be a learning curve in the approval and permitting process for new facilities as municipalities work to fully understand state regulations as well as what additional guidelines they can apply at the local level.

That makes it exceedingly important that everyone on the project team – from the owner/developer/landlord to the architect and construction firm – be well-versed in the rules and requirements around marijuana dispensaries and cultivation facilities. Not only do we need to be able to build these facilities to both the client’s and the state’s specifications, but we also need to be able to assist and work with municipalities as they learn and implement the state regulation. It’s also helpful for partners on the project to have previous experience with similar projects in order to anticipate questions or issues that are likely to arise and head them off if possible.

Commercial Marijuana dispensary construction projects
Marijuana dispensary projects have similarities to traditional retail and “medtail” build-outs, but also entail special considerations and features for ensuring a secure environment for storing, displaying and selling the product.

4. Security, Mechanicals and More

Any project might have unique construction considerations, but with cannabis dispensaries, we’ve been ahead of the game because these projects have many similarities to the storefront build-outs we regularly complete for our retail clients. That said, state regulations do add some additional layers to the nuts and bolts of these projects. Security features, for one, are a major difference between a dispensary and a ‘typical’ retail store. These facilities are designed to ensure a secure environment for everything from receiving deliveries to storing, displaying and selling the product.

In terms of cultivation facilities, contractors also need to understand and plan for the extensive mechanicals that go into these locations. These large facilities require specialty systems for artificial light, watering and humidification. They use an inordinate amount of water and power, and so the appropriate infrastructure must be in place to support them.

5. Good News for the Local Retail Landscape

In June’s Hard Hat Chat post, which shared our takeaways from ICSC RECon, we noted that most retail developers and landlords say nothing is off the table when it comes to filling vacant space or bringing new traffic to retail centers. As more states pass legislation legalizing recreational marijuana, we anticipate much of the stigma associated with it will start to fade and, eventually, many of our retail clients will consider cannabis companies a viable, profitable opportunity to fill space. Just as the retail sector has evolved with the effects of ecommerce and the exit of many major anchor stores and national brands, so too will it adjust to match the demand and opportunities with this new segment.

Chuck Taylor, Director of Operations
Tel: 847-233-9200 x712

Questions? Comments?
You can reach me at CTaylor@eci.build
www.EnglewoodConstruction.com



from Hard Hat Chat http://commercialconstructionblog.com/planning-and-executing-marijuana-dispensary-construction-projects/
via Hard Hat Chat

Wednesday, July 17, 2019

3 Critical Questions to Ask Before Starting an Adaptive Reuse Commercial Construction Project

This column from Chuck Taylor, Englewood Construction’s director of operations, was originally published by GlobeSt.com.

An adaptive reuse construction project, such as the conversion of this former grocery store into Englewood’s headquarters in Lemont, Ill., involves extra planning and special considerations.
An adaptive reuse construction project, such as the conversion of this former grocery store into Englewood’s headquarters in Lemont, Ill., involves extra planning and special considerations.

While it’s always thrilling to create a new building, some of the most rewarding construction projects to work on involve the adaptive reuse of an existing property. I love the process of taking a building that has outlived its original usefulness, and giving it new life for a new purpose. 

Englewood Construction is in the midst of two adaptive reuse projects right now – one a former meatpacking facility in Chicago that we’re updating for office, retail or restaurant use, and the other a former convent we’ll be converting into a senior living community. These are only the latest in a number of adaptive reuse projects we’ve handled over the years – including our own corporate headquarters in Lemont, Ill., which was a third-generation grocery store before we converted it into our offices. In all these cases, and with any adaptive reuse job, there are special considerations to think about beyond what comes into play for ground-up new-construction or even renovation of an existing space for a similar purpose (like retail to retail). Here are a few important questions to keep in mind:

What will it take to make the existing space work for its new purpose?

One of the first questions in any adaptive reuse project is what modifications need to be made to the existing floor plan and structure so the space works for its new purpose. There’s often a lot of creativity in this process, not only from the client envisioning the potential of the space and the architect coming up with the design, but also from the general contractor in figuring out how to make that design a reality and anticipating what challenges and costs are involved – some of which could potentially make or break the project.

With the former meatpacking facility, we’re making significant modifications to the building’s floor plates, such as increasing the existing 11-foot ceiling clearances – which were appropriate for the building’s original use, but are too low for the expectations of today’s commercial space tenants. Because the client brought us onto this project during the early planning stages, we were able to collaborate to ensure this was feasible, and also value-engineer the design.

That said, we’ve had other projects where the modifications to make the space work were just too much for the budget. For example, we did some budgeting for a climbing gym concept that was investigating a location in the former food court of a high-rise on Chicago’s Magnificent Mile. Ultimately, the costs related to removing escalators and infilling atrium openings were higher than the client anticipated and killed the deal. This goes to show just how valuable it is to involve an experienced GC in an adaptive use project early enough to provide realistic pricing intel.

2. What modifications or updates need to be made to building systems?

Most adaptive use projects will require at least some updates to building systems because you are starting with an older property. That was certainly the case with our Englewood office. Because the previous owner didn’t keep up with a regular scheduled facility maintenance program, none of the building’s rooftop HVAC units were in condition to be reused, so they had to be replaced.

Or, there may have been code changes since the property was originally built, requiring updates in mechanicals or building systems. This is especially true for things like fire suppression sprinkler systems. With our convent conversion, an addition built in the 1980s has sprinklers, but the original building does not. Because of the change in use, we are required to install sprinklers throughout the entire building – the biggest infrastructure line item for the entire project.

Other building system updates might be necessary to meet the future use of the space. Restaurants, for example, require higher capacity for electrical, water and waste than an office or retail space. For our meatpacking facility project, the client opted to upgrade the capacity of the electrical, water and waste systems so the building is ready to accommodate a variety of possible future tenants – including a restaurant.

3. What elements can – and should – be preserved?

While not every adaptive reuse project is in a historically significant or landmark-status building, many are. If that’s the case, there will be a whole additional level of review by the appropriate landmark authority before work begins, and the entire project team should have a thorough understanding of which original features are landmark-protected and must be preserved.

Other adaptive reuse projects aren’t necessarily in historic buildings, but are located in an area where the community is committed to preserving the original character of the neighborhood. In these cases, keeping – or recreating – certain original elements is often a goal of the project. For our meatpacking facility conversion, the building’s original façade was removed years ago because it was structurally unsound. The new façade we are building echos the original design and is in line with the prominent architecture of the neighborhood.

And in some cases, original features can be saved for practical reasons because they fit nicely with the new purpose of an adaptive reuse project. An example of this is the existing chapel at our convent conversion project. Our client typically includes a chapel in all of its senior living properties, so it makes sense to keep this space as-is, with a few cosmetic updates.

An adaptive reuse project is a creative blend of old and new. By working closely with experienced project partners, including a knowledgeable general commercial contractor, it’s possible to find the balance between an exciting vision for a project and the practical considerations for bringing that vision to life.

Chuck Taylor, Director of Operations
Tel: 847-233-9200 x712

Questions? Comments?
You can reach me at CTaylor@eci.build
www.EnglewoodConstruction.com



from Hard Hat Chat http://commercialconstructionblog.com/starting-an-adaptive-reuse-commercial-construction-project/
via Hard Hat Chat