In June, 22,000 job losses pushed the national total to 1.8 million unemployed construction workers. One year ago, the industry’s jobless rate was 17.4 percent.
“While the recession is abating for much of the economy, job losses in construction continue. Most building companies have been forced to slash their workforces significantly in order to survive,” said David Pittman, Tucson director of the Arizona Builders’ Alliance, a construction trade association.
 In June, Arizona’s construction industry lost another 900 jobs. Nationally, 22,000 more people were laid off. Roger Yohem photo |
Statewide, the Arizona Department of Commerce reports employment in all fields of construction for June was about 113,800 workers. That is 900 fewer than in May.
Compared to the June 2009 level of 130,600 workers, construction jobs have declined 13 percent.
Competition is extremely stiff and profits are razor thin. For commercial property owners and tenants, Pittman said “great deals are available if they have the money or can access the financing needed to build or renovate projects.”
The U.S. Labor Department reported that the commercial specialty trade sector was hit the hardest in June with 13,000 jobs lost. For the quarter, the sector shed 22,100 jobs. Since June 2009, specialty trades are down 234,200 jobs.
Nationally in residential construction, 2,700 jobs were lost in the second quarter. As an industry, construction has lost 447,000 jobs nationally since June 2009. The nation’s general unemployment rate was 9.5 percent in June.
A sustainable plan
The Planning Center of Tucson has authored the state’s first fully-sustainable General Plan for a municipality. The City of El Mirage, northwest of Phoenix, adopted the plan July 8 and will present it to voters for ratification on the Nov. 2 ballot.
A General Plan is a blueprint for government officials to use to evaluate proposals for development, redevelopment and revitalization. State law requires all municipalities in Arizona to adopt a general plan.
The El Mirage General Plan includes policy direction for contained farming, industry and technology, affordability, revitalization, water harvesting, roof gardens, multi-modal access, walk-ability, energy efficiency, and a targeted 50 percent reduction of the city’s carbon foot print by 2020.
It also requires new development to meet the high LEED (Leadership in Energy and Environment Design) standards.
“This is an example of what a compact, land-locked community can do to leverage limited resources when the right public-private partnership is in place,” said George Flores, the city’s community development director.
Along with public participation, The Planning Center coordinated a national team for the project including SERA Architects of Portland, Ore., Nolte Associates of Colorado Springs, and Theater Simple of Seattle. The Planning Center, located at 110 S. Church Ave., Suite 6320, is owned by Mike Grassinger, Jack Neubeck, and Linda Morales. Maria Masque is a principal and project manager.
Scott Chesney, the city’s economic development director, said the plan will help “rebuild the economy of an economically unsustainable city.” Prior plans used “old-school strategies” of breaking the city into zones such as industrial, retail, and residential.
“This integrated plan allows for mixed use, flexibility, opportunities without boundaries, and the setting of policies that will result in quality of life and sustainability,” he said Chesney.
The Planning Center is currently working on the General Plan update for the city of Nogales.
Housing inventory falls
Tucson’s housing inventory continued it slow-shrinking pace in June, according to the Coldwell Banker Residential Mortgage Market Report. June ended with 5,269 available residential properties, an 8 percent decline from 5,729 in April. At the end of June 2009, inventory stood at 5,835 units for a year-over-year drop of 9.7 percent.
It took longer to sell homes in June than May, as the average number of days on market increased to 75 from 69. In June 2009, the average time period was 80 days.
Sales and leases
• Desert Bloom Family Practice leased 2,748 square feet at 1925 W. Orange Grove Road, Suite 201, from Healthcare Realty Services. Thomas Nieman and Rajan Lal, Picor Commercial Real Estate Services, represented the landlord. Tony Reed, Long Realty, represented the tenant.
• Southwest Center for Law and Policy leased 2,320 square feet at Velasco House, 475 S. Stone Ave. Landlords Penelope Porter, William Dillon and Carolyn Lenz were represented by Buzz Isaacson and Ike Isaacson, CB Richard Ellis.
• Dry Heat Promotional Products leased 2,233 square feet at Palo Verde Business Center, 3820 S. Palo Verde Road, Suite 107, from Palo Verde Trust Partners LLC. Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services, represented the landlord. Mark Hays and Mo Brady, Tierra Antigua Realty, represented the tenant.
• Carlos Federico leased from Block One Property LLC 1,980 square feet at 3600 S. Palo Verde Road, Suite 110. Rob Glaser and Russ Hall, Picor Commercial Real Estate Services, handled the transaction.
• A Plus Printing & Typesetting leased 1,822 square feet at Midway Business Park, 4500 E. Speedway, Suite 41, from Presson Midway LLC. Rob Glaser and Paul Hooker, Picor Commercial Real Estate Services, handled the transaction.
• Joel L. Herz PC leased from DHS Property Investments, 1,602 square feet at 3573 E. Sunrise Drive, Suite 215. Rajan Lal, Picor Commercial Real Estate Services, handled the transaction.
• Western Contractors Supply leased 1,581 square feet at 6418 E. Tanque Verde Road. Buzz and Ike Isaacson, CB Richard Ellis, represented the landlord, the Schomac Group.
E-mail news items for this column to ryohem@azbiz.com. Inside Real Estate & Construction appears weekly.
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