Western Real Estate Business recently spoke with experts in the construction and design business to see how their industries are evolving and what trends are prevalent today. Post-September 11 security concerns, the incorporation of the latest technology, both in methods and building features, and increased consultant involvement were issues that came up. Major trends include the increased focus on green development, varying designs for multifamily projects and the structural specialization of healthcare facilities.

Green is Good

These days, general contractors and architects alike are seeing increased awareness of green or environmental issues from clients across all property types. This trend has manifested itself in sustainable, integrated architectural practices, a renewed focus on building reuse and recycle issues, and an emphasis on environmental leadership in the building industry. That’s where the Leadership in Energy & Environmental Design (LEED) Green Building Rating System comes in. The voluntary, consensus-based program, developed by various segments of the building industry, provides a standard for building performance and sustainability.

LEED certification from the U.S. Green Building Council is being pursued for the DPR-ABD building in Sacramento, California.

“Sustainable design and construction — green buildings — have grown more popular over the last couple of years,” says Greg Hulbert, director of business development for DPR Construction Inc., a commercial contractor with offices in Phoenix and throughout California. “The basic principle there is to produce a high-quality facility that significantly reduces or eliminates the negative impact of buildings on the environment. Although not all [clients] choose to participate in the LEED certification program, various elements of sustainable design and construction are being incorporated into their projects.”

Because of LEED, real estate clients are showing more green and sustainability awareness in both the planning and building stages of projects. This was not as evident a few years ago, says John Deenihan, principal for Rothenberg Sawasy Architects (RSA) in Los Angeles. Of course, these demands are usually blended with budget considerations. Through the efforts of the U.S. Green Building Council, which developed the LEED program, contractors and their clients know that green facilities improve the overall health and well-being of their tenants as well as generate revenue through long-term energy and water savings and occupant productivity.

In the area of LEED awareness and green development, RSA has invested in the education and certification of individuals in both interiors and architecture. “We have a green committee that continually researches and spreads the word officewide regarding new materials that are appropriate to green [construction] issues,” says Deenihan.

DPR stays in tune with important trends through extensive training and a constant focus on customer feedback. The results of the training? As of October 6 of this year, DPR has more U.S. Green Building Council LEED-accredited professionals on staff (42) than any other general contractor in the country, according to Hulbert.

Multifamily Moves

Lowell Mazon, vice president of construction for Orchard Commercial Inc. in San Jose, California, points to multifamily as the property type that has undergone the biggest changes in construction and design in his company’s region. In terms of available multifamily product, there are many more offerings these days including mid-rise condos that incorporate retail and office components. Mazon, whose firm specializes in industrial, office and retail construction, sees more change in construction design and incentives than the actual building methods.

“No new methods have revolutionized the industry,” says Mazon, who maintains that customer service, speed, accuracy and cost are still the top priorities. “But the sluggish economy seems to be getting local municipalities to work with you to keep businesses here and buildings full.”

Regarding residential construction methods, Deenihan has seen a significant change in framing material. There has been a shift to metal-stud framing, particularly in multifamily condo projects.

“Metal has been used for years in commercial work, but wood studs and framing have been the mainstay of residential work,” says Deenihan. “With increasing liability issues attached to wood — wood can shrink, bend, twist, morph and can harbor mold, termites, etc. — the insurance industry has driven the shift to replace wood with the more stable metal.”

According to Monica Vasquez-Guillena, marketing director for McLarand Vasquez Emsiek & Partners Inc. (MVE), multifamily construction has changed the most in the last few years, with the increased density and height found in the different project types. MVE is active in multifamily projects as well as retail, office, mixed-use, student-housing, educational facility and resort construction projects. Vasquez-Guillena says that cost is still a driver of construction trends as seen by the alternative structural systems that have been introduced to boost affordability.

“We are seeing emerging construction types, including pre-fabricated systems that are changing the cost and nature of construction in the multifamily industry,” says Vasquez-Guillena. “This includes taller buildings with patented systematized approaches.”

Vasquez-Guillena also mentions construction location and positioning when asked about the different trends in the industry. In the future, population density and the resulting traffic and stressed infrastructure will cause further residential building centralization around urban cores, employment centers and transit hubs and less emphasis on single-family developments.

Mission-Critical & Healthcare Construction

McCarthy Building Companies is employing the latest in seismic base isolation technology at the east tower of Hoag Memorial Hospital’s Presbyterian Women’s Pavilion in Newport Beach, California.

McCarthy Building Companies, a 139-year-old construction firm based in Orange County, California, handles commercial and institutional construction projects ranging from office, retail and multifamily properties to laboratory and biotech facilities. But Senior Vice President Dennis Katovsich cites healthcare as the sector with the most variability.

“Healthcare construction has changed the most, because of the requirements by the state of California related to SB 1953 — a law signed into California State legislature in 1994 that imposes strict new seismic-safety standards for acute care hospitals,” he says.

Because of this requirement, the use of seismic-base isolation is one of the new construction methods used in California hospital construction. This application provides for a safer building during a code-level earthquake.

“The base isolators, which are located in the sub-basement between the foundation and the structural steel columns, allow lateral movement from about 30 inches in any direction during a seismic event, thus minimizing damage to the structure and its contents,” says Katovsich, whose company is using such technology at the seven-level east tower project at Hoag Memorial Hospital’s Presbyterian Women’s Pavilion in Newport Beach, California.

Due to state-mandated seismic regulations, hospitals’ structural steel beams are being welded to columns now. These welded connections protect the inhabitants as well as the expensive and highly sensitive contents within the facilities. “These trends affect our job as builders and construction managers because we need to be able to provide project owners with the cost and construction schedule data to determine whether a [hospital] building should be retrofitted or rebuilt,” says Katovsich.

McCarthy Building Companies’ clients are requesting that more and more technology be incorporated into their buildings. The fact that many of them will wait to the last minute for the latest technological component makes for a tighter timeline in the building process while putting more pressure on the company and its fast-track delivery. Despite that new stress, Katovsich’s company must remain committed to providing a quality and cost-sensitive product. According to Hulbert of DPR, which also specializes in hospital construction, the building parameters within the healthcare industry continue to evolve as advancing medical technology dictates new facility design. At the same time, outpatient medical facilities, such as ambulatory surgical care and clinical centers, continue to become more prevalent.

©2003 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.