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

| May 15, 2014

Biking to work up by 60 percent, according to Census Bureau report

Many U.S. cities are seeing an increase in bicycle commuters, according to new a U.S. Census Bureau report. While bicyclists still account for just 0.6% of all commuters, some of the nation's largest cities have more than doubled their rates since 2000.

| May 15, 2014

'Virtually indestructible': Utah architect applies thin-shell dome concept for safer schools

At $94 a square foot and "virtually indestructible," some school districts in Utah are opting to build concrete dome schools in lieu of traditional structures. 

| May 15, 2014

First look: 9/11 Memorial Museum opens to first-responders, survivors, 9/11 families [slideshow]

The 110,000-sf museum is filled with monumental artifacts from the tragedy and exhibits that honor the lives of every victim of the 2001 and 1993 attacks. 

| May 14, 2014

Construction growth looking up: Gilbane Spring 2014 Economic Report

Construction spending for 2014 should finish 6.6% higher than in 2013, with nonresidential work contributing substantially.

| May 14, 2014

Prefab payback: Mortenson quantifies cost and schedule savings from prefabrication techniques

Value-based cost-benefit analysis of prefab approaches on the firm's 360-bed Exempla Saint Joseph Heritage Project shows significant savings for the Building Team. 

| May 13, 2014

First look: Nadel's $1.5 billion Dalian, China, Sports Center

In addition to five major sports venues, the Dalian Sports Center includes a 30-story, 440-room, 5-star Kempinski full-service hotel and conference center and a 40,500-square-meter athletes’ training facility and office building.

| May 13, 2014

Drexel University case study report: Green Globes cheaper, faster than LEED

GBI’s Green Globes certification process is significantly less expensive to conduct and faster to complete than LEED certification, says Drexel prof.

| May 13, 2014

Universities embrace creative finance strategies

After Moody’s and other credit ratings agencies tightened their standards a few years ago, universities had to become much more disciplined about their financing mechanisms.

| May 13, 2014

19 industry groups team to promote resilient planning and building materials

The industry associations, with more than 700,000 members generating almost $1 trillion in GDP, have issued a joint statement on resilience, pushing design and building solutions for disaster mitigation.

| May 13, 2014

Libeskind wins competition to design Canadian National Holocaust Monument

A design team featuring Daniel Libeskind and Gail Dexter-Lord has won a competition with its design for the Canadian National Holocaust Monument in Toronto. The monument is set to open in the autumn of 2015.

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