Banks across the country are starting to loosen their lending restrictions, freeing up capital for construction projects and developments in the housing sector. Construction executives are obtaining loans at favorable rates, providing firms with cash to purchase assets, materials and supplies to accommodate the increasing demand for new housing projects. To keep track of the new resources, projects and deadlines, firms should consider construction software and fixed asset management solutions to increase productivity and reduce costly errors and oversights.
Cities invest in housing
A recent survey from the Office of the Comptroller for Currency revealed construction firms have applied for permits to build new multifamily housing units at a seasonally adjusted annual rate of more than 240,000 a year each month since the summer. As banks have increased their lending to developers, construction firms are enjoying a rate of construction twice that reported just after the recession, National Real Estate Investor reported.
The National Multi Housing Council's October 2012 Quarterly Survey of Apartment Market Conditions measured equity and debt financing, both more available now for new developments. However, financing for construction still has its limitations, placing emphasis on certain markets and projects with the greatest needs. About 37 percent of construction financing nationwide is available for the top properties in the leading markets, while 36 percent is set aside for all property types in leading markets. With high-priority construction jobs popping up across the country, firms are managing multiple tasks, projects and assets dispersed across several sites. Software for construction firms helps executives stay on schedule while fixing errors before they make a serious impact on operations.
Redevelopments in Wisconsin
The Port Washington plan commission recently listened to and reviewed two redevelopment projects proposed for the city's downtown area. Similar to projects taking place across the country thanks to increased accessibility to financing options, the Port Washington job is scheduled to be completed by the end of the second quarter of 2013. The 21,000-square-foot development will include new structures and renovations to existing facilities, The Milwaukee Journal Sentinel reported.
Gertjan van den Brock from Renew Port Holdings LLC presented a plan for the 100 block of N. Franklin Street that address both commercial and residential needs. The mixed-use project would offer first floor commercial space for local businesses, with 18 apartment units on the three floors above. Franklin Street Holdings LLC's Dan Ewig proposed renovating the Boerner Mercantile Building also on N. Franklin Street. Ewig's plan called for first floor retail space and two floors of offices, the Journal Sentinel reported.
When firms work with communities to revamp downtown locations, software for construction projects can help track assets, monitor progress and better predict disruptions to keep firms on schedule.