Tuesday, March 16, 2010

The World of Commercial

The commercial construction market continues to struggle much as the rest of the overall economy. With the exception of the financial and legal markets, the rest of us remain on the slow train toward recovery.

In the private development market, re-capitalization is one of the biggest hurdles to overcome. As billions and billions of dollars worth of term loans come due, owners and developers are struggling to find the capital necessary to refinance their properties. A huge problem comes in the form of appraisals that set the market value for a property. For example: a property owner has a $3 million equity stake in a building that was worth $9 million a year ago. A new appraisal comes in at $1.5 million. The bank, now wants $1.5 million to continue to carry the debt on the property. Understand that the new appraisal is not worth the paper it is written on, but it shows the 180 degree turn around in the process that helped get us where we are today. This newly found conservatism is having a profound impact on the commercial real estate industry.

As more and more of these properties go through this process, many owners will lose their properties and many others will have properties of lesser value making it difficult for new development to compete. As the developers of new projects seek loans, the lower market value means higher equity contribution from the investors, and a longer duration before a similar return. Therefore, many investors are looking at investment opportunities other than development.

Having said all that, once this process runs it course, the market will settle down, and new development will commence again. In the meantime, there will be a few owner-occupied projects to bid, plus a decent amount of work in the public and hospital sectors to keep us going for a while....

Sincerely,

Gary Zagelow
Commercial Segment Manager

Tuesday, March 9, 2010

Environmental Additions

As a society we are becoming increasingly aware of our effect on the environment. This awareness is driving demand for more sustainable products across every industry. The difficult part is balancing what’s environmentally responsible with what is economically sensible. As consumers and designers, we look for opportunities where we can get what we need for the right price and do the right thing.

At Mutual Materials, we recognize the demand for more sustainable options in our product line and have expanded our Environmental product family beyond our group of permeable pavers. Helping our plants and our customers reduce their carbon footprint, we are now offering a paver and segmental retaining wall block that are made with recycled content.

Our Holland and Manorstone are both attractive products that are very difficult to distinguish from the original products. Holland pavers and Manorstone have been two of the most popular products, making them an ideal starting point for using recycled materials. Both of these products may contribute to LEED credits based on their recycled content. For more information contact your local branch or check www.mutualmaterials.com.

One last note to remember is that Mutual Materials original product, brick, is also very green. It may not be part of the Environmental family of products, but that does not mean we take for granted the environmental aspects of brick: a 100 year life cycle, non toxic, and locally produced.

More new products are on the way so stay tuned.

Sincerely,

Brian Healow
Dealer Segment Manager

Monday, March 1, 2010

Now Is The Time To Find A Qualified Contractor

Spring is right around the corner, so now is the time to start thinking about your home improvement projects. If your project includes masonry or hardscape work, you’ll want to consider our Preferred Contractor Program. This program takes the mystery and trepidation out of finding a qualified contractor within your area. Preferred Contractors must meet minimum qualifications to be associated with the program, so you can be confident that the companies responding to your request for a bid will be professional and experienced. Keep in mind contractors are also gearing up for the construction season, which means their schedules will start filling up fast. So if you think you’ll need a contractor for your project, take the time to at least get a couple of bids.

To find a Preferred Contractor, go to www.mutualmaterials.com and click on “Connect with a Contractor”. From there, it’s just a few easy steps to finding a quality contractor who is familiar with our products. Prior to going through this process, please take some time to review our product offerings on the website. This will prepare you to discuss your project needs with the contractors who contact you. We wish you much success with your project!

Sincerely,

Rob Rosson
Residential Sales Manager