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
Affordable Housing | Jun 12, 2024
Studio Libeskind designs 190 affordable housing apartments for seniors
In Brooklyn, New York, the recently opened Atrium at Sumner offers 132,418 sf of affordable housing for seniors. The $132 million project includes 190 apartments—132 of them available to senior households earning below or at 50% of the area median income and 57 units available to formerly homeless seniors.
Lighting | Jun 10, 2024
LEDs were nearly half of the installed base of lighting products in the U.S. in 2020
Federal government research shows a huge leap in the penetration of LEDs in the lighting market from 2010 to 2020. In 2010 and 2015, LED installations represented 1% and 8% of overall lighting inventory, respectively.
Education Facilities | Jun 6, 2024
Studio Gang designs agricultural education center for the New York City Housing Authority
Earlier this month, the City of New York broke ground on the new $18.2 million Marlboro Agricultural Education Center (MAEC) at the New York City Housing Authority’s Marlboro Houses in Brooklyn. In line with the mission of its nonprofit operator, The Campaign Against Hunger, MAEC aims to strengthen food autonomy and security in underserved neighborhoods. MAEC will provide Marlboro Houses with diverse, community-oriented programs.
Contractors | Jun 4, 2024
Contractors expect to spend more time on prefabrication, according to FMI study
Get ready for a surge in prefabrication activity by contractors. FMI, the consulting and investment banking firm, recently polled contractors about how much time they were spending, in craft labor hours, on prefabrication for construction projects. More than 250 contractors participated in the survey, and the average response to that question was 18%. More revealing, however, was the participants’ anticipation that craft hours dedicated to prefab would essentially double, to 34%, within the next five years.
Airports | Jun 3, 2024
SOM unveils ‘branching’ structural design for new Satellite Concourse 1 at O’Hare Airport
The Chicago Department of Aviation has revealed the design for Satellite Concourse 1 at O’Hare International Airport, one of the nation’s business airports. Designed by Skidmore, Owings & Merrill (SOM), with Ross Barney Architects, Juan Gabriel Moreno Architects (JGMA), and Arup, the concourse will be the first new building in the Terminal Area Program, the largest concourse area expansion and revitalization in the airport’s almost seven-decade history.
Multifamily Housing | Jun 3, 2024
Grassroots groups becoming a force in housing advocacy
A growing movement of grassroots organizing to support new housing construction is having an impact in city halls across the country. Fed up with high housing costs and the commonly hostile reception to new housing proposals, advocacy groups have sprung up in many communities to attend public meetings to speak in support of developments.
MFPRO+ News | Jun 3, 2024
New York’s office to residential conversion program draws interest from 64 owners
New York City’s Office Conversion Accelerator Program has been contacted by the owners of 64 commercial buildings interested in converting their properties to residential use.
MFPRO+ News | Jun 3, 2024
Seattle mayor wants to scale back energy code to spur more housing construction
Seattle’s mayor recently proposed that the city scale back a scheduled revamping of its building energy code to help boost housing production. The proposal would halt an update to the city’s multifamily and commercial building energy code that is scheduled to take effect later this year.
Mass Timber | May 31, 2024
Mass timber a big part of Western Washington University’s net-zero ambitions
Western Washington University, in Bellingham, Wash., 90 miles from Seattle, is in the process of expanding its ABET-accredited programs for electrical engineering, computer engineering and science, and energy science. As part of that process, the university is building Kaiser Borsari Hall, the 54,000-sf new home for those academic disciplines that will include teaching labs, research labs, classrooms, collaborative spaces, and administrative offices.
Construction Costs | May 31, 2024
Despite challenges, 2024 construction material prices continue to stabilize
Gordian’s Q2 2024 Quarterly Construction Cost Insights Report indicates that supply chain issues notwithstanding, many commodities are exhibiting price normalization.
