Project Guidebook: Issue 3

Project Guidebook Assuming the worst for TI lead times? Maybe you don’t have to.

04 Healthcare trends we’ll be seeing more of in 2024.

08 Historic abandoned jailhouse brings new value to its community.

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elcome to the third edition of the Gardner Builder’s Project Guidebook. In our past two issues, we’ve focused on using the collective knowledge of our team and industry peers to inform your

projects. In this new edition, we’ve narrowed our focus on key market sectors experiencing change or growth as we kick off 2024. We’ve gathered information on industry trends, pricing and lead time updates, and where we see exciting challenges and opportunities in various markets.

Please enjoy this issue of our project guidebook and we hope you find it as a useful tool. We would love it if the ideas written here spark conversation among your teams and with your clients. If so, please tell us about it! We always want to hear from you and be a part of the continued conversation about what’s shaping our industry.

Barry Stoffel

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Tenant Improvement As we look ahead to a steady workload of tenant improvement projects in 2024, our team at Gardner Builders is constantly keeping a pulse on material pricing and lead times. This heightened awareness of volatility is a by-product of the last few years where we experienced extreme conditions in the construction industry.

BELL BANK

NORWEST EQUITY 4

TWINS HQ

With ever-changing market conditions in mind, we find it helpful to keep a list of common discussion items for commercial TI projects, regularly challenging what assumptions are being held over from previous experience with the current reality. We have observed that some items are still worth paying extra attention to, but some have returned to a relatively predictable state. The results may surprise you!

HVAC

Assumption

Reality

Material shortages are still causing HVAC component shortages.

VAV’s are typically 4-6 weeks from approval and quick-ship options are becoming more available if needed.

Basic VAV’s

Custom HVAC units like heat pumps are typically 12 weeks from approved drawings. Use Gardner as a resource for the most up-to-date information!

Interior Doors

Assumption

Reality

16+ weeks without

12-16 weeks after approved shop drawings, similar to pre-COVID reliability.

Assumption

Reality

Carpet lead times are still longer than what we’re used to seeing.

Back to 4-6 weeks for standard carpets, but add in an extra week for shipping for the most accurate delivery date.

reliable delivery dates.

Carpet

As we get closer to summer, keep an eye on these timelines and be prepared for this to increase by 1 or 2 weeks.

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Healthcare The Gardner Builders team reached out to our clients and industry partners, seeking their insights into the current trends shaping the healthcare sector. Below is a snapshot of some of the topics that are continuously evolving and influencing healthcare design and development, as shared by our survey respondents.

WAY-FINDING

SUSTAINABILITY

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Crafting designs that cater to the needs of an aging population, ensuring accessibility and comfort for all individuals.

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Advancing Building Automation Systems to support overall facility efficiency and sustainability.

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Embracing a holistic approach to accessibility and inclusion, making it an integral part of every aspect of design for a more universally welcoming environment.

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Addressing the challenges of retrofitting aging facilities on hospital campuses to align with current sustainability goals.

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Prioritizing facility recycling plans and strategically locating dumpsters as part of a comprehensive, sustainable design approach.

SAFETY

MENTAL HEALTH

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Recognizing mental health considerations as integral to all healthcare facilities, not limited to behavioral health centers.

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Designing facilities with active shooter considerations to prioritize the safety of occupants during emergencies.

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Placing added emphasis on creating wellnessoriented and low-stress environments for the well-being of both patients and staff.

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Integrating distress/panic buttons and advanced alarm systems for a swift and effective response to potential threats.

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Acknowledging that a focus on wellness and mental health is essential for employee retention and overall job satisfaction among healthcare providers.

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Implementing bulletproof glass in unconventional areas like check-in stations and entry vestibules to enhance security measures.

SOUTH LAKE PEDIATRICS

OVO LASIK

HILGER CLINIC

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FOLEY

LEAD TIMES Precast Wall Panels . . . . . . . . . . . . . . . . . . . . . . . 12-14 weeks Steel Joist & Deck . . . . . . . . . . . . . . . . . . . . . . . . . 10-12 weeks Glass (Winter) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 weeks Glass (Summer/Fall Peak) . . . . . . . . . . . . . . . . . . . . . . 6 weeks Dock Levelers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-6 weeks Main Switchgear 1,600A or larger . . . . . . . . . 40-45 weeks Light Poles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-9 weeks

TWIN CITY TWISTERS

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Industrial

Current Pricing Industrial Office TI 2k-5k SF: $135/SF 5k-10k SF: $120/SF 10k-30k SF: $105/SF

Demising Wall

Insulated not rated, 2 coat

24’ clear: $8.25/SF 28’ clear: $9/SF 32’ clear: $9.75/SF

Gas Unit Heater $7,500 each

Exterior Aluminum Entrance (with stoop) Alum. storefront: $26,000 Alum. door only: $21,000

Warehouse Cooling (to maintain 75 degrees)

$5.00 - $5.50 /SF

Warehouse Code Min. Exhaust $.50-$.60 /SF

Cut-In New Drive-In Door 12’x14’ & Ramp $80,000-$90,000

Warehouse Lights to 30FC (no racking)

$1.50/SF

9’x10’ Cut-In New Dock Door & Leveler $27,000-$30,000

Restrooms Single Unisex: $30,000 Unisex Pair: $55,000

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Life Sciences In the dynamic landscape of U.S. Life Science, Medical Device, and Medical Technology industries, innovation thrives within thoughtfully designed and constructed research spaces.

Facilities that embrace modular designs can adapt quickly and seamlessly to the rapid evolution of technology. These smart building configurations elevate innovation and operational efficiency, while collaborative environments foster synergy amongst teams. This strategic shift towards dynamic and responsive settings emphasizes a commitment to cutting-edge advancements, shaping the future of healthcare technology and development.

INNOVATIVE RESEARCH SPACES Integrating advanced research and development spaces within a facility fosters continuous innovation.

1 ELEVATING LABS

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Many companies are looking to elevate their labs and R&D spaces and highlight them as a focal point. The goal is to show off their innovative technologies to investors and potential clients to win business.

MODULAR & ADAPTABLE DESIGNS Embracing modular & adaptable designs that cater to the evolving nature of technologies positions the organization at the forefront of innovation for efficient product launches. They can help increase speed to market, but are more limited in customization.

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COLLABORATIVE WORK ENVIRONMENTS

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Growing emphasis on collaborative spaces to foster synergy among professionals in these sectors.

By placing these environments adjacent to the lab spaces, it gives lab users a place to work together outside of their “clean spaces”.

BIOMERICS

MINNETRONIX

COLDER PRODUCTS C OMPANY

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Historic Renovation Historic renovations and repositions are projects of passion. They require Owners, Investors, and Contractors committed to the legacy and memories of the spaces they intend to develop. The buildings selected for Historic renovation re-invigorate the local community, stir people to action and become centerpieces of their local environment.

Making the development financially viable, while preserving the physical space, requires a team of people who have specific experience with this complex project type.

The State of MN and the U.S. National Park Service each offer a 20% tax credit (40% combined credit) on Qualified Reimbursable Expenses (QRE’s).

Gardner Builders has completed and participated in multiple State of Minnesota and National Park Service historic projects. Our team is fluent in the financial reporting, preservation requirements, and timelines necessary to complete these iconic buildings.

From Abandoned Jailhouse to Apartments

NOVOGRADAC & COMPANY HISTORIC REHABILITATION AWARD

MINNESOTA BROWNFIELDS’ RESCAPE AWARD RECIPIENT

Once known as the St. Louis County Jail, The Leijona Apartments is bringing new life to Duluth by transitioning into 33 mixed-use apartments. Built in 1923 and having sat empty for 30 years, the renovation preserved many historical elements, including the jail cell doors. Gardner Builders completed Leijona in December 2022.

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AFTER

RI VERPLACE

The reason why developers transform these properties is more about what they represent to a community than it is about the business case - but - it has to make business sense. This is where we come in; to serve as a bridge between two worlds.”

MIKE BEER | GARDNER BUILDERS

JI CASE

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TWINS HQ

INVERPOINT

PINNACLE WALL 14 14

TALKING WALLS

JELLY CAT HQ

HEALTH PARTNERS APPLE VALLEY 15 15

Contact Us I N FO@ GAR DN ER -BUILDERS. COM GA R DN ER -BUILDERS. COM

+ 612 326 6377 730 SECOND AVENUE SOUTH, SUITE 1233 MINNEAPOLIS, MN 55402 648 NORTH PLANKINTON AVE, SUITE 233 MILWAUKEE, WI 53203 16