flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Real estate investors lose over $2.6B annually in roof system value

Real estate investors lose over $2.6B annually in roof system value

CRS Roof Consultants analysis reveals US Property Investors will be Losing from $2B to $5B annually by 2014 in roof system asset values.


March 8, 2011

SAN JOSE, CA (March 8, 2011) - CRS Roof Consultants, the leading Independent Roof Consulting Firm and authority on Commercial Roof System Investments reports industry losses on the consumption side of the equation. Buyers will be loosing between $2.6B and $5.6B annually, in roof system value by the year 2014.

According to a Freedonia Group, the US Roofing Industry is expected to expand by 2.4% through 2014 reaching nearly $18B in value. Additional reports suggest material cost will rise by 4.5% over the same time period.

Industry Life-Cycle Reports indicate roof systems worldwide fail on average in about 17 years. CRS Roof Consultants who tracts regional life-cycles says dryer states like California experience much shorter life-cycle averages, closer to 14 years for commercial roof systems.

Combined, the numbers represent a 15% to 32% in loss value on the purchase of 20/25 year assets respectively. "Total losses depend on buyer perceptions as to the expected Life-Cycle", said Kevin Cardoza, a Senior Analyst at CRS Roof Consultants. Most consumers (residential and commercial) expect to get closer to 25 years out of a 20 year roof system. Industry reports on premature failures as low as 12 years with an average of 17 years indicate a huge loss in value for buyers.

The installation of Roof Systems entail various components that are assembled to manufacture a complete roof system on-site at building locations. The only available controls close to an equivalent ISO9000 are certifications required by some material manufacturers, which only apply to contractors who offer the manufacturers' extended warranties.

Inefficiencies and generally accepted roof practices at the point of installation account largely for early water intrusion issues, said Dale Rowe (RRO), an Independent Registered Roof Observer and Inspector. Buyers leave the details up to contractors who write bid proposals where architects and general contractors reference warranty specifications but leave out critical roofing project details.

Statistically, roof systems installed in accordance with a set of defined performance rules under a complete roofing project specification outpace expectations and last from twenty to thirty years. Real Estate Investors, Management and Tenants whom adhere to roof system performance objectives tend to reduce long-term asset maintenance expense.

The ratio of Commercial Buildings and Annual Roofing Projects to the number of Independent Roof Consulting Firms suggest only a fraction of all Roof System Investments are based on Bid Specifications that define and hold contractors accountable for installation/labor warranty performance.

A well written Roofing Project Bid Specification can run $10K-$12K and save $60K-$80K on a Commercial Building but many private investors and smaller real estate investment firms view it as unnecessary expense. So, it's not unusual to see a barrage of abandoned rooftop assets from a history of rotating tenants and out of control roofing expense.

Only a few tenants (ie: Home Depot, Safeway, Best Buy, etc.) who's entire building is dedicated to product storage for immediate delivery implement Rooftop Asset Management Programs. Short term office and R&D building occupants seldom return rooftop assets (including that space below roof substrates) to their original condition as required by triple net leases.

Tight credit markets and reduced flipping have real estate investors moving more towards a value based approach to roofing. "We've seen increased demand for both Written Roofing Project Specifications and Project Management in the commercial markets but Home Owner Associations remain resistant to higher cost on those projects" said Construction Performance Builders, Inc. President, Terrence Osuga.

About CRS Roof Consultants

CRS Roof Consultants, the nations leading Independent Roof Consulting Firm. Established in 1986, its headquarters remain in the heart of Silicon Valley (San Jose, California) where it services national clients. As an authority on Commercial Roof System Investments, CRS Roof Consultants publishes information and technical papers that outline and educate readers on best roofing practices for property owners, investors, asset managers and property managers in the commercial real estate industry.

For more information about CRS Roof Consultants, the Roof Inspection White Paper or to obtain a free copy, visit: http://www.CRSRoofConsultants.comhttp://www.CRSRoofConsultants.com

Related Stories

| Nov 20, 2014

Lean Led Design: How Building Teams can cut costs, reduce waste in healthcare construction projects

Healthcare organizations are under extreme pressure to reduce costs, writes CBRE Healthcare's Lora Schwartz. Tools like Lean Led Design are helping them cope.

| Nov 19, 2014

The evolution of airport design and construction [infographic]

Safety, consumer demand, and the new economics of flight are three of the major factors shaping how airlines and airport officials are approaching the need for upgrades and renovations, writes Skanska USA's MacAdam Glinn.

| Nov 19, 2014

Construction unemployment hits eight-year low, some states struggle to find qualified labor

The construction industry, whose workforce was decimated during the last recession, is slowly getting back on its feet. However, in certain markets—especially those where oil drilling and production have been prospering—construction workers can still be scarce.

Sponsored | | Nov 19, 2014

3 technology trends on the horizon

As technology continues to evolve exponentially, construction firms have ongoing opportunities to enhance the quality, speed, and efficiency of building projects and processes. SPONSORED CONTENT

Sponsored | | Nov 19, 2014

Long-life coatings vs. long-life screws

Are you concerned with the long-life protection of your metal building project? SPONSORED CONTENT

Sponsored | | Nov 19, 2014

Fire resistive, blast-resistant glazing: Where security, safety, and transparency converge

Security, safety and transparency don’t have to be mutually exclusive thanks to new glazing technology designed to support blast and fire-resistant secure buildings. SPONSORED CONTENT

| Nov 19, 2014

Must see: Arup, Damian Rogers propose urban surf park in Melbourne

The surfing pool would offer 98-foot-wide waves that would run the length of the 500-foot-long enclave.

| Nov 18, 2014

Architecture Billings Index dips in October, still shows positive outlook design services

Headed by the continued strength in the multifamily residential market and the emerging growth for institutional projects, demand for design services continues to be healthy, as exhibited in the latest Architecture Billings Index.

| Nov 18, 2014

New tool helps developers, contractors identify geographic risk for construction

The new interactive tool from Aon Risk Solutions provides real-time updates pertaining to the risk climate of municipalities across the U.S.

| Nov 18, 2014

Grimshaw releases newest designs for world’s largest airport

The airport is expected to serve 90 million passengers a year on the opening of the first phase, and more than 150 million annually after project completion in 2018. 

boombox1
boombox2
native1

More In Category

Urban Planning

Bridging the gap: How early architect involvement can revolutionize a city’s capital improvement plans

Capital Improvement Plans (CIPs) typically span three to five years and outline future city projects and their costs. While they set the stage, the design and construction of these projects often extend beyond the CIP window, leading to a disconnect between the initial budget and evolving project scope. This can result in financial shortfalls, forcing cities to cut back on critical project features.




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021