The Trades

“Don’t forget about the trades.”

The reminder came from our neighbor, Rudy, a lifelong tradesman. If you’ve read this column for any length of time, you’ve heard me mention him before. He’s one of my biggest supporters, an avid reader, and every so often he’ll stop me to challenge something I’ve written or offer a perspective I hadn’t considered.

This time, his message was different.

There was pride in his voice, certainly. But there was also disappointment. His concern was that too many young people have been encouraged to pursue white collar careers while overlooking professions that literally built America. Plumbers. Electricians. Carpenters. Concrete finishers. Welders. Heavy equipment operators. HVAC technicians. The list goes on.

His words stuck with me.

Coincidentally, just days earlier I had listened to a long-form conversation between former Navy SEAL Sean Ryan and Mike Rowe, best known for Dirty Jobs. Rowe has spent years advocating for skilled trades through his mikeroweWORKS Foundation, whose mission is to close America’s skilled labor gap, challenge the stigma surrounding vocational careers, and promote the value of hard work.

The timing was hard to ignore.

Perhaps the universe was nudging me in the same direction as Rudy.

You may be wondering what any of this has to do with commercial real estate.

Everything.

Every industrial building we lease, every office we sell, every warehouse we reposition, every manufacturing facility we tour exists because skilled tradesmen and women transformed a set of architectural drawings into a functioning building.

When a company relocates, it isn’t simply a lease signing. Electricians install power. Carpenters build offices. Concrete crews reinforce slabs. Dock equipment is installed. Fire sprinkler contractors make modifications. HVAC specialists rebalance the system. Painters, flooring contractors, roofers and dozens of other trades bring a vacant shell to life.

Without them, our transactions would remain little more than paper.

The same is true for manufacturing. Machines don’t maintain themselves. Distribution centers don’t repair themselves. Buildings age. Equipment wears out. Communities grow because skilled people know how to build, repair and improve them.

Yet somewhere along the way, we’ve unintentionally created the impression that success only comes with a four-year degree and a desk.

That simply isn’t true.

Many skilled trades provide outstanding incomes, entrepreneurial opportunities, job security and the satisfaction of creating something tangible at the end of every day. They also offer something increasingly rare: demand that continues to outpace supply.

Commercial real estate professionals witness this every day. We don’t simply sell buildings. We watch businesses expand because talented people make products, move freight and solve problems with their hands as well as their minds.

Rudy reminded me of something important.

The trades deserve more than our appreciation. They deserve our encouragement.

If you’re a parent, expose your children to the possibilities. If you’re an employer, invest in apprenticeships. If you’re a business leader, celebrate the craftsmen and women whose work makes yours possible.

America has always been built by people willing to roll up their sleeves.

Let’s make sure the next generation knows there is honor, opportunity and tremendous value in doing exactly that.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 
 

The Trades

Today takes on a personal note from several perspectives. First, on my industrial deals, I’ve worked with general contractors and their sub contractors for over four decades. Secondly, my neighbor Rudy - my biggest fan and occasional column critic - made a great living working for Arciero Brothers. Their specialty was concrete work for massive tilt ups, multi family buildings and office towers. Rudy managed projects for them until his retirement. And finally, my wife and I are on the home stretch of completing a remodel of our house - a much needed freshening of a forty year old structure. Freshening is a bit like saying - some moisture recently - to describe the deluge of rain we’ve received this month in California. Yeah. We took the exterior down to the studs and replaced aging siding, drafty windows and cracking doors. We added square footage and remodeled interior finishes. The end result is amazing - but oh what a journey! Rudy suggested I write a column about the contractors - trades - that brought the completion forward. Jobs such as ours - tiny in comparison to the construction of a project of new logistics buildings - employs so many people. Allow me to elaborate.

Let’s take one of the new developments in the Inland Empire as an example. First, a land owner must be willing to sell. Then a developer must be willing to buy. Their dance is choreographed by folks in my profession - commercial real estate brokers. Generally, both seller and buyer have representation.
Once the points of the transaction are hammered out, an attorney or two enters the fray to insure the writings match the letter of intent and any verbal agreements.

A fully signed contract now transfers to an escrow company for execution. Title is involved to issue a preliminary report of things such as loans, liens, and easements affecting the ground.

So far, I’ve counted four professions in addition to a buyer and seller who’ve touched this deal - and it’s just underway.

Architects, soils engineers, civil and structural engineers, environmental people, city personnel in planning, building, police, fire, and council members all have a part in the opening acts. Six more professions and city employees are involved and the property hasn’t changed hands.
Someone must be willing to finance said project during its acquisition, construction, and hold period if leased. Loan brokers, banks, insurance companies, and lenders complete the encumbrances. Another profession gets a taste.

Once escrow closes, entitlements are completed and a building permit is issued. Now the fun begins as our project can go vertical. A general contractor is engaged to build and he deploys legions of sub-contractors including concrete, electricians, plumbers, carpenters, structural steel erectors, crane drivers, pavement, glass, roofers, heating ventilating and air conditioning, framers, drywall, landscapers, flooring, and many more. The number of jobs created by just one new industrial project is in the dozens. And that’s just one example.

Imagine the number of families supported by new construction. Thousands! And I’ve not mentioned the trades needed for day to day repairs and installations.

By the way, these are good jobs - capable of options for those employed such as saving for retirement, purchasing homes, sending their kids to great schools, and sponsoring awesome vacations. Many are unaware of the career opportunities available in the trades. It seems some believe college and management positions are the way. Certainly nothing against that path as it rings a familiar tone. But, you’ll know I’m right next time you need a plumber on Sunday or that faulty breaker trips. The helpless feeling of “whatever it costs - just restore my electricity” will resound. We once were a society that built stuff and lauded those who swung the hammers. I for one would enjoy a return to those days.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.