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Market Trends

Bozzuto Construction is fortunate to have a great view of the market. With over $900 million in active contracts and $400 million in annual revenues, we are able to see what is happening in real time.

When reviewing our current projects and those in our pipeline, some notable trends emerge.

1. Inflation continues. It’s no surprise that we are still in an inflationary market, with four-seven percent pricing increase year-to-date. This is amplified as every new project attempts to be better than the last one built down the street. Additionally, we all know skilled labor is a very limited resource. Our subcontractors have pre-recession backlogs and we’ve seen a notable increase in the number of subcontractor defaults. Unfortunately, these things won’t change anytime soon.

2. Our renovation projects are now outpacing new construction. Of our 41 active projects, 22 are renovation and/or capital improvement projects. We have created a dedicated team within Bozzuto Construction that specializes in renovations and capital improvements. This is not at all a new project type for us, but activity has increased; which is why this team has grown exponentially over the last couple of years to meet market demand.

3. Renovated rents are sought after vs. new residences. Even though new developments are available, many hopeful customers soon realize they simply cannot afford the rent, but still want to live in a desirable location. This is one of the reasons we are seeing such a tremendous uptick in capital improvements and renovations. Rents are high, former “B-” locations are now A locations, and not everyone wants to live in a 700 square foot apartment with a roommate.

Overall, we are expecting this “renovation trend” will stick around for a while. And we are hopeful that prices will stabilize in the summer of 2017, as quantity of new starts will likely flatten..

Mike Schlegel I President | Bozzuto Construction Company|

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Liberty Harbor East

Bozzuto Construction is excited to announce that construction on Liberty Harbor East, a 22-story, 317-unit high-rise project in Baltimore City’s Inner Harbor MD is now underway. This $120 million project, owned by H&S Bakery/Paterakis and designed by Hickok Cole, will be built by Bozzuto Construction Company, and is one of the most significant projects under construction in Baltimore. The scope includes the construction of a 64,000 square foot Whole Foods Market, 571 parking spaces, and 11,000 square feet of amenity space with a 21,000 square foot exterior courtyard on the ninth floor, along with both apartments and condominiums. Liberty Harbor East is expected to be completed in February/March of 2019.

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Chestnut Square Completion Dinner

In October, the PA Bozzuto Construction team celebrated the completion of Chestnut Square in West Chester, PA; a new build owned by Cornerstone Communities, Inc. and designed by Bernardon Haber Holloway Architects, PC and Gacek Design Group. The scope included construction of a mid-rise apartment building containing 205 residential units over a two-level 334-space below-grade steel structure parking garage, and over 11,000 square feet of amenity space. Chestnut Square was completed with substantial savings and is already 75% leased—congratulations to all on its successful completion!

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Annual UMAR Boxing Fundraiser

The 2016 UMAR Boxing for Books Fundraiser, organized by Dave Schorr, Bozzuto Construction Vice President/Controller and Jeff Kayce, Bozzuto Development Senior Vice President, took place on September 22nd at Union Wharf in Baltimore, MD. The goal of the event was to raise funds and awareness for the UMAR Boxing Program, an afterschool program for at-risk youth in Baltimore City. Both Dave, who has been involved with the program since its inception in 1997 and Jeff, the primary driver of this annual event since joining the UMAR Board in 2010, were thrilled with the outcome of the event, which raised 30% of UMAR’s annual budget.

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Brompton House Topping Out Party

On September 28th, Bozzuto Construction hosted a Topping Out party at the Brompton House in Elkridge, MD to celebrate the project’s vertical completion. In addition to the construction team, the event was attended by representatives from the project owner, Blue Stream 2, LLC and the project architect, Hord Coplan Macht, Inc. The Brompton House project includes new construction of 25 townhomes, a u-shaped building with 116 apartment units, and a bar-shaped building consisting of 52 apartment units. Construction is expected to complete in Spring 2017. Congratulations to the entire Brompton House project team on this exciting milestone!

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