cont. page 2

PRESTIGE CONCRETE -JACKSONVILLE JAGUAR STADIUM

RANDALL MECHANICAL -DR. PHILLIPS CENTER , ORLANDO

KHS&SLauretano Sign GroupLDILeesburg ConcreteLiberty Concrete and FormingMader SoutheastMagicdesignonline.comModern PlumbingMorganti GroupPCD Building Corp.PCL Construction Services, Inc.Petersen MetalsPhillips & Jordan, Inc.Plans & Specs Reprographics, Inc.Plummer Painting & Waterproofing, Inc.PPC Professional Services, IncPrestige Concrete ProductsPro-VigilQuality Labor Management (QLM)Randall MechanicalRobins & MortonRoger B. Kennedy, Inc.SI Goldman IncSilva’s Painting & General ServicesSkanskaSPEC Contractor Services, LLCSteel Fabricators LLCStructural TechnologiesSutter RoofingTerry,s ElectricTharp Plumbing Systems Inc.The Whiting-Turner Contracting CompanyTri-City Electrical ContractorsUnited Forming, Inc.United Wall SystemsUniversal CreativeVision Three Sixty, LLCWalt Disney ImagineeringWCCIWELBROWilliams CompanyWilliams Scotsman IncWindow Interiors

PCEA-ORLANDO OFFICERS & BOARD MEMBERS

PRESIDENT - ROB ALLEN, AUSTIN COMMERCIALPRESIDENT ELECT - AARON SMITH, PCL CONSTRUCTION1ST VICE PRESIDENT - CURTIS YODER, VISION 3602ND VICE PRESIDENT - CHRIS JOYCE, THARP PLUMBINGTREASURER - JEFF ALBRIGHT, ROBINS & MORTONSECRETARY - TREVOR HAMILTON, WCCINATIONAL DIRECTOR - SCOTT COLEMAN, AUSTIN COMMERCIALBOARD MEMBER - JEFF FRIEDRICH, FRIEDRICH WATKINSBOARD MEMBER - ART HIGGINBOTHAM, WDIBOARD MEMBER - CHRISTINA KANHAI, PCL CONSTRUCTIONSBOARD MEMBER - MACKENZIE GROVE, HARPER LIMBACHBOARD MEMBER - FORD HAZELIP, HOAR CONSTRUCTIONBOARD MEMBER - STEVEN RENNER, i+iconSOUTHEASTBORAD MEMBER - JESSICA GREATHOUSE, ADVANCED MILLWORK

Member CompaniesAdvanced Indoor RemediatorsAdvanced Millwork Inc.amaZulu Inc.Architectural Sheet Metal, inc.Argos Ready MixAustin CommercialBaker Concrete ConstructionBalfour Beatty ConstructionBalfour Beatty Construction, LLCBASE Consultants, Inc.Bright Future ElectricBrown & Brown InsuranceBRPHC.T. Windows, dba Architectural Aluminum TechniquesCCK Construction Services, Inc.CEMEXClancy and Theys Construction CoComfort House, IncConstruction Cost ServicesConTech Construcion, LLCContractors Direct SalesCornerstone Construction Services, Inc.Cox FireDesign Communications, LTDDPRDPR ConstructionDura-Stress.comEagle Finishes IncECS FloridaEnergy Air, Inc.F Moynihan CompanyFriedrich Watkins CompanyGMF Construction, LLCGulf Mechanical ContractorsHarmon IncHarper Limbach LLCHensel Phelps ConstructionHJ FoundationHoar Constructioni+iconSoutheastJK2 Construction & ScenicJohnson Controls Inc

SILVER SPONSORS

PCEA would like to thank all our sponsors for supporting us

throughout the year.

GOLD SPONSORS

PROFESSIONAL CONSTRUCTION ESTIMATORS ASSOCIATIONORLANDO, FL

November 2016-Vol. 14, Issue 06COMPANIES REPRESENTED BY MEMBERSHIP

with color STAND OUTDIGITAL PRINTING

PCEA ORLANDOis a chapter of

The National Professional Construc-tion Estimators Association

For Event and MembershipInformation Log on to www.pcea-orlando.org

BRONZE SPONSOR

FRIM GROUND FOR COMMERCIAL MARKETSAccording to the National Association of Realtors most recent Q2, 2016 Commercial Real Estate Forecast, buoyed by a steadily improving labor market and strong demand for multifamily housing, U.S. commercial real es-tate activity should remain on an upward trajectory, with a growing share of it is expected to be in smaller markets.

National office vacancy rates are forecast by Realtors to fall 1.5 percent to 10.4 percent over the coming year as employment gains boost demand for office space. The vacancy rate for industrial space is expected to decline 0.7 percent to 8.7 percent, and retail availability to decrease 1.0 percent to 10.5 percent. Only vacancies in the mul-tifamily sector are expected to edge higher over the next year, from 5.9 percent to 6.1 percent, as new apartment construction comes onto the market.

Lawrence YunLawrence Yun, NAR chief economist, says the commercial real estate sector is on firm ground in spite of the numerous global and domestic headwinds that continue to keep U.S. economic growth in a headlock. “Ongoing overseas weakness and the slowdown in business investment despite historically low interest rates held second quarter growth at a tepid and disappointing pace,” he said. “Only steady job creation, solid consumer spending and residential construction - albeit not enough of it - kept the economy afloat during the first half of the year.”

Adds Yun, “Tightening vacancy rates and rising rents are clear positive fundamentals, but commercial real estate property prices have been bid up too high and look to weaken in the upcoming months.”

Strengthening local job markets has fueled sustained demand for commercial space and has pushed vacancy rates down in all commercial sectors. However, a growing concern from Realtors, who mostly have clients that rely on financing to secure deals, is that underwriting standards have stiffened in light of increased regulatory scrutiny.

MONTHLY MEMBER MEETINGSALL MEMBER MEETINGS ARE HELD AT

5:30 PM, IN THE CITRUS CLUB,

255 S ORANGE AVE, ORLANDO, 18TH FLOOR

PLEASE GO TO OUR WEBSITE TO SEE DETAILS AND

TO REGISTER FOR MEETINGS OR EVENTS

www.pcea-orlando.org

“Any further tightening in credit standards, which never fully normalized after the recession, would inflict the most pressure on the small and mid-sized businesses that mostly look to community banks and credit unions for commercial property financing,” adds Yun. “Not having the necessary access to capital could keep a lid on building and leasing activity and in turn keep the economy from getting closer to its long-term average of 3 percent growth.”

With new construction outside of the multifamily sector taking a breather during the first half of the year, overall demand outpaced supply and suppressed inventory levels in many areas. This was evident in the Realtor’s survey. The survey revealed that inventory shortages are the num-ber one concern for Realtors, which is in turn pushing price growth upward. Prices for com-mercial properties increased 5.3 percent in the second quarter compared to a year ago, with the average transaction cost at $1.4 million.

“While inventory constraints and strong appreci-ation in apartment and retail properties pushed up prices in large commercial markets last quar-ter, overall sales volume was still down as inves-tors looked for better deals and higher yields in smaller cities,” says Yun. “As a result, invest-ments and leasing activity in middle-tier and

smaller markets led the way and are expected to maintain their momentum in coming months.”

Given the global low yield environment, instabil-ity overseas and the probability of a rate hike by Federal Reserve at the end of the year, investors are expected to take a cautious approach in the months ahead, leading to a likely slowdown in commercial property prices - especially in Class A assets in larger markets. Meanwhile, prices in smaller markets should continue to climb with strong tenant demand and declining supply sup-porting growth.

According to Yun, the demand for apartments will continue to drive multifamily housing con-struction, albeit at a more moderate pace, as a growing share of builders shift from apartments to single-family homes. Expected completions being added in coming years should begin to moderate rents and nudge vacancies higher.

“The U.S. economy has its flaws and has been stuck in slow-growth mode ever since the Great Recession,” says Yun. “However, it’s still the top performing economy in the world, and U.S. com-mercial real estate should continue to remain a stable investment and attractive option for inves-tors even as rates move upward.”

cont. from page 2

PROFESSIONAL CONSTRUCTION ESTIMATORS ASSOCIATION-ORLANDO, FLFor Event and Membership Information Log on to

www.pcea-orlando.org

MEETINGS & EVENTSTHIS MONTH’S PROGRAM

Randy Welch Scholarship Golf Tournament

Reunion Resort Watson Course

Austin Commercial- Marco Island Marriott Lanai

UPCOMING EVENTS

Randy Welch Scholarship Tournamenta good time was had by all

MONTHLY MEMBER MEETINGSALL MEMBER MEETINGS ARE HELD AT

5:30 PM, IN THE CITRUS CLUB,

255 S ORANGE AVE, ORLANDO, 18TH FLOOR

PLEASE GO TO OUR WEBSITE TO SEE DETAILS AND

TO REGISTER FOR MEETINGS OR EVENTS

www.pcea-orlando.org

“Any further tightening in credit standards, which never fully normalized after the recession, would inflict the most pressure on the small and mid-sized businesses that mostly look to community banks and credit unions for commercial property financing,” adds Yun. “Not having the necessary access to capital could keep a lid on building and leasing activity and in turn keep the economy from getting closer to its long-term average of 3 percent growth.”

With new construction outside of the multifamily sector taking a breather during the first half of the year, overall demand outpaced supply and suppressed inventory levels in many areas. This was evident in the Realtor’s survey. The survey revealed that inventory shortages are the num-ber one concern for Realtors, which is in turn pushing price growth upward. Prices for com-mercial properties increased 5.3 percent in the second quarter compared to a year ago, with the average transaction cost at $1.4 million.

“While inventory constraints and strong appreci-ation in apartment and retail properties pushed up prices in large commercial markets last quar-ter, overall sales volume was still down as inves-tors looked for better deals and higher yields in smaller cities,” says Yun. “As a result, invest-ments and leasing activity in middle-tier and

smaller markets led the way and are expected to maintain their momentum in coming months.”

Given the global low yield environment, instabil-ity overseas and the probability of a rate hike by Federal Reserve at the end of the year, investors are expected to take a cautious approach in the months ahead, leading to a likely slowdown in commercial property prices - especially in Class A assets in larger markets. Meanwhile, prices in smaller markets should continue to climb with strong tenant demand and declining supply sup-porting growth.

According to Yun, the demand for apartments will continue to drive multifamily housing con-struction, albeit at a more moderate pace, as a growing share of builders shift from apartments to single-family homes. Expected completions being added in coming years should begin to moderate rents and nudge vacancies higher.

“The U.S. economy has its flaws and has been stuck in slow-growth mode ever since the Great Recession,” says Yun. “However, it’s still the top performing economy in the world, and U.S. com-mercial real estate should continue to remain a stable investment and attractive option for inves-tors even as rates move upward.”

cont. from page 2

PROFESSIONAL CONSTRUCTION ESTIMATORS ASSOCIATION-ORLANDO, FLFor Event and Membership Information Log on to

www.pcea-orlando.org

MEETINGS & EVENTSTHIS MONTH’S PROGRAM

Randy Welch Scholarship Golf Tournament

Reunion Resort Watson Course

Austin Commercial- Marco Island Marriott Lanai

UPCOMING EVENTS

Randy Welch Scholarship Tournamenta good time was had by all

cont. page 2

PRESTIGE CONCRETE -JACKSONVILLE JAGUAR STADIUM

RANDALL MECHANICAL -DR. PHILLIPS CENTER , ORLANDO

KHS&SLauretano Sign GroupLDILeesburg ConcreteLiberty Concrete and FormingMader SoutheastMagicdesignonline.comModern PlumbingMorganti GroupPCD Building Corp.PCL Construction Services, Inc.Petersen MetalsPhillips & Jordan, Inc.Plans & Specs Reprographics, Inc.Plummer Painting & Waterproofing, Inc.PPC Professional Services, IncPrestige Concrete ProductsPro-VigilQuality Labor Management (QLM)Randall MechanicalRobins & MortonRoger B. Kennedy, Inc.SI Goldman IncSilva’s Painting & General ServicesSkanskaSPEC Contractor Services, LLCSteel Fabricators LLCStructural TechnologiesSutter RoofingTerry,s ElectricTharp Plumbing Systems Inc.The Whiting-Turner Contracting CompanyTri-City Electrical ContractorsUnited Forming, Inc.United Wall SystemsUniversal CreativeVision Three Sixty, LLCWalt Disney ImagineeringWCCIWELBROWilliams CompanyWilliams Scotsman IncWindow Interiors

PCEA-ORLANDO OFFICERS & BOARD MEMBERS

PRESIDENT - ROB ALLEN, AUSTIN COMMERCIALPRESIDENT ELECT - AARON SMITH, PCL CONSTRUCTION1ST VICE PRESIDENT - CURTIS YODER, VISION 3602ND VICE PRESIDENT - CHRIS JOYCE, THARP PLUMBINGTREASURER - JEFF ALBRIGHT, ROBINS & MORTONSECRETARY - TREVOR HAMILTON, WCCINATIONAL DIRECTOR - SCOTT COLEMAN, AUSTIN COMMERCIALBOARD MEMBER - JEFF FRIEDRICH, FRIEDRICH WATKINSBOARD MEMBER - ART HIGGINBOTHAM, WDIBOARD MEMBER - CHRISTINA KANHAI, PCL CONSTRUCTIONSBOARD MEMBER - MACKENZIE GROVE, HARPER LIMBACHBOARD MEMBER - FORD HAZELIP, HOAR CONSTRUCTIONBOARD MEMBER - STEVEN RENNER, i+iconSOUTHEASTBORAD MEMBER - JESSICA GREATHOUSE, ADVANCED MILLWORK

Member CompaniesAdvanced Indoor RemediatorsAdvanced Millwork Inc.amaZulu Inc.Architectural Sheet Metal, inc.Argos Ready MixAustin CommercialBaker Concrete ConstructionBalfour Beatty ConstructionBalfour Beatty Construction, LLCBASE Consultants, Inc.Bright Future ElectricBrown & Brown InsuranceBRPHC.T. Windows, dba Architectural Aluminum TechniquesCCK Construction Services, Inc.CEMEXClancy and Theys Construction CoComfort House, IncConstruction Cost ServicesConTech Construcion, LLCContractors Direct SalesCornerstone Construction Services, Inc.Cox FireDesign Communications, LTDDPRDPR ConstructionDura-Stress.comEagle Finishes IncECS FloridaEnergy Air, Inc.F Moynihan CompanyFriedrich Watkins CompanyGMF Construction, LLCGulf Mechanical ContractorsHarmon IncHarper Limbach LLCHensel Phelps ConstructionHJ FoundationHoar Constructioni+iconSoutheastJK2 Construction & ScenicJohnson Controls Inc

SILVER SPONSORS

PCEA would like to thank all our sponsors for supporting us

throughout the year.

GOLD SPONSORS

PROFESSIONAL CONSTRUCTION ESTIMATORS ASSOCIATIONORLANDO, FL

November 2016-Vol. 14, Issue 06COMPANIES REPRESENTED BY MEMBERSHIP

with color STAND OUTDIGITAL PRINTING

PCEA ORLANDOis a chapter of

The National Professional Construc-tion Estimators Association

For Event and MembershipInformation Log on to www.pcea-orlando.org

BRONZE SPONSOR

FRIM GROUND FOR COMMERCIAL MARKETSAccording to the National Association of Realtors most recent Q2, 2016 Commercial Real Estate Forecast, buoyed by a steadily improving labor market and strong demand for multifamily housing, U.S. commercial real es-tate activity should remain on an upward trajectory, with a growing share of it is expected to be in smaller markets.

National office vacancy rates are forecast by Realtors to fall 1.5 percent to 10.4 percent over the coming year as employment gains boost demand for office space. The vacancy rate for industrial space is expected to decline 0.7 percent to 8.7 percent, and retail availability to decrease 1.0 percent to 10.5 percent. Only vacancies in the mul-tifamily sector are expected to edge higher over the next year, from 5.9 percent to 6.1 percent, as new apartment construction comes onto the market.

Lawrence YunLawrence Yun, NAR chief economist, says the commercial real estate sector is on firm ground in spite of the numerous global and domestic headwinds that continue to keep U.S. economic growth in a headlock. “Ongoing overseas weakness and the slowdown in business investment despite historically low interest rates held second quarter growth at a tepid and disappointing pace,” he said. “Only steady job creation, solid consumer spending and residential construction - albeit not enough of it - kept the economy afloat during the first half of the year.”

Adds Yun, “Tightening vacancy rates and rising rents are clear positive fundamentals, but commercial real estate property prices have been bid up too high and look to weaken in the upcoming months.”

Strengthening local job markets has fueled sustained demand for commercial space and has pushed vacancy rates down in all commercial sectors. However, a growing concern from Realtors, who mostly have clients that rely on financing to secure deals, is that underwriting standards have stiffened in light of increased regulatory scrutiny.