Status: U Return-Path: Received: from whmx-spanish.pas.sa.earthlink.net ([127.0.0.1]) by whmx-spanish.pas.sa.earthlink.net (EarthLink SMTP Server) with SMTP id 1q9q272iF3NZFkN0; Mon, 11 Apr 2011 15:56:35 -0700 (PDT) Received: from mail149c38.carrierzone.com ([66.175.56.179]) by whmx-spanish.pas.sa.earthlink.net (EarthLink SMTP Server) with ESMTP id 1q9q26ky3NZFkN0 for ; Mon, 11 Apr 2011 15:56:34 -0700 (PDT) X-Authenticated-User: merilee.kerncommunications.com Received: from merilee07cf8a9 (wsip-68-15-13-44.sd.sd.cox.net [68.15.13.44]) (authenticated bits=0) by mail149c38.carrierzone.com (8.13.6/8.13.1) with ESMTP id p3BMuSiY008271; Mon, 11 Apr 2011 22:56:32 GMT Message-ID: <92469F72A19243C8801F72A2C02F083D@merilee07cf8a9> Reply-To: "Merilee Kern" From: "Merilee Kern" To: , "Ryan Regina" , "Mike Regina" , "'Ed Willis'" , "Raoul Davis" , , Subject: FOOD PROCESSING Magazine Placement (also in April print issue) Date: Mon, 11 Apr 2011 15:56:35 -0700 Organization: Kern Communications MIME-Version: 1.0 Content-Type: multipart/related; type="multipart/alternative"; boundary="----=_NextPart_000_1EAC_01CBF861.08D9F8D0" X-Priority: 3 X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook Express 6.00.2900.5931 X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5994 X-CSC: 0 X-CHA: v=1.1 cv=oex+n6F0LHSuQMtOyUqo1NcLr4K4Ds7LCYIaBgVgFeY= c=1 sm=1 a=guTsZdnqg6IA:10 a=nGo8SpNOHtMA:10 a=OkTZCP_1vwgA:10 a=amoHW2/Lxk+JwdK3UfH89Q==:17 a=LD6IYylMAAAA:8 a=EK0KP4OeV-7aPUuhVO0A:9 a=by50v3fSrJShQIzniJEA:7 a=wPNLvfGTeEIA:10 a=8017MTNCfS4A:10 a=cbvI4E_A5yEdmbJj:21 a=rkX_1NrEJgOpXijt:21 a=kziYVIc7AAAA:8 a=MbE6T7vBgg1vmcLllggA:9 a=N76tMQ5RlEDFQgkFvcgA:7 a=ovKrDLO6GKAA:10 a=dS-elv0CmshAzb-Q:21 a=BN5r8PW26jLlsHVq:21 a=CWIYgpm6Tn8ZeiPUC50A:9 a=1Vq_FK4TplAA:10 a=FuKO83VPY8Im-gOM_9MA:9 a=amoHW2/Lxk+JwdK3UfH89Q==:117 X-ELNK-AV: 0 X-ELNK-Info: sbv=0; sbrc=.0; sbf=00; sbw=010; This is a multi-part message in MIME format. ------=_NextPart_000_1EAC_01CBF861.08D9F8D0 Content-Type: multipart/alternative; boundary="----=_NextPart_001_1EAD_01CBF861.08D9F8D0" ------=_NextPart_001_1EAD_01CBF861.08D9F8D0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable http://www.foodprocessing.com/articles/2011/capitalspending_regina.html Four Benefits of Building in a Bad Economy Favorable reasons to pull the trigger on a commercial construction = initiative during an economic downturn. By Michael Regina, Big Sky Enterprises | 04/05/2011 There is no doubt that these are extraordinary times. Highly volatile = market conditions and ongoing uncertainty have made it duly challenging = for the commercial construction industry and its trade partners. Amid = the current economic downturn, now may not seem like a good time to = build - especially in the commercial sector. However, while perspectives = may differ, there are many benefits of building in a bad economy, which = can present unique opportunities. The key is knowing what to look for = and maintaining a forward-thinking "visionary" mentality. =20 In any tumultuous period of change, the 'doom and gloom' set will always = find reasons to postpone building projects, but those who actively seek = the silver lining and closely assess timing-based opportunities can gain = significant advantages. Here are four favorable reasons to pull the trigger on a commercial = construction initiative during an economic downturn: 1. Deeply Discounted Real Estate The U.S. has seen property values for commercial real estate drop 20-45% = across the board. In the western states the decrease has been even = deeper. A good example is a recent deal on a piece of land that was = under contract in 2007 for $1.5 million. Eventually, that deal fell = apart in the development process for the previous buyer. Now, the = current price being paid for that same parcel is $800,000.=20 The same goes for new office buildings that sold for $2.4 million in = 2008 that are now selling for $1.6 million in 2011. Even landlords are = doing everything possible to protect their portfolios -- from giving = away free rent for a year to dropping rental rates to 2001 levels. = Owners are looking to reduce their losses. Consequently, this puts more = power and control in the hands of the buyer. Additionally, given the = fact that real estate owners are cash poor and looking to convert their = assets, there is a large supply of land and existing buildings on the = market.=20 About the Author Michael Regina is the co- founder and owner of Big Sky Enterprises - an = industry leading commercial real estate developer, design/builder and = finance firm that strategizes, executes and oversees every aspect of a = project development life cycle to provide clients with single = professional contact-point control.=20 2. Rock Bottom Interest Rates It may be difficult to remember the last time commercial interest rates = were this low. It was, in fact, approximately 20 years ago, dating back = to the early 1990s. Comparative analysis on new commercial interests in = certain markets shows that, today, it is cheaper to own a building than = to rent, opting to forego paying someone else's mortgage when rates are = so low. Like owning a house, commercial real estate should also be = viewed as a long-term investment where it doesn't make sense to just = throw money at a landlord each month. In today's market, it's a great = time to buy and build. =20 =20 3. Streamlined Processes Despite downturns, one thing that is full steam ahead is streamlined = processes. Even five years ago, it seemed to take a lifetime to get any = new project approved through various local, county and state governing = agencies. This is definitely not the case today. Now, it appears that = these same agencies are starving for fees and are desperate for new = projects, when one bears in mind that the fees new development brings = support many of these agencies.=20 It's not uncommon for townships to call construction firms inquiring = about new submissions. These agencies need to support the departmental = staff who process project paperwork and are eager to know what's in the = minimized pipeline. The combination of technological efficiencies and = eager reporting agencies have swung the pendulum back in the favor of = construction companies who used to be at the mercy of the paperwork = bottleneck. In a slow economy, there is a greater ability to control = more parts of the process in relation to agencies, which makes it a = great time to build. =20 4. Reduced Cost of Labor, Materials and Services The law of economics states that when there is an excess supply of any = good or service the cost of that good or service will drop. This is the = case with the cost of labor, goods and professional services. Various = trades are constantly seeking work from any projects that can be = generated during this downturn. This was quite different in 2006 when = these same companies were turning down work just as fast as they were = growing business with the surplus work they already had. Today, = companies are willing to cut their prices in order to keep their = employees, resulting in decreased labor and services costs.=20 ------=_NextPart_001_1EAD_01CBF861.08D9F8D0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
http://www.foodprocessing.com/articles/2011/capitalspending_= regina.html
 
3DFoodProcessing.com=20
 
Four = Benefits of=20 Building in a Bad Economy
 

Favorable reasons to pull the trigger on = a=20 commercial construction initiative during an economic = downturn.

By Michael Regina, Big Sky Enterprises |=20 04/05/2011

 
There is no doubt = that these are=20 extraordinary times. Highly volatile market conditions and ongoing = uncertainty=20 have made it duly challenging for the commercial construction industry = and its=20 trade partners. Amid the current economic downturn, now may not seem = like a good=20 time to build =96 especially in the commercial sector. However, while = perspectives=20 may differ, there are many benefits of building in a bad economy, which = can=20 present unique opportunities. The key is knowing what to look for and=20 maintaining a forward-thinking "visionary" mentality.  

In = any=20 tumultuous period of change, the 'doom and gloom' set will always find = reasons=20 to postpone building projects, but those who actively seek the silver = lining and=20 closely assess timing-based opportunities can gain significant=20 advantages.

Here are four favorable reasons to pull the trigger = on a=20 commercial construction initiative during an economic = downturn:

1. Deeply=20 Discounted Real Estate
The U.S. has seen property values for = commercial real=20 estate drop 20-45% across the board. In the western states the decrease = has been=20 even deeper. A good example is a recent deal on a piece of land that was = under=20 contract in 2007 for $1.5 million.  Eventually, that deal fell = apart in the=20 development process for the previous buyer. Now, the current price being = paid=20 for that same parcel is $800,000.

The same goes for new office = buildings=20 that sold for $2.4 million in 2008 that are now selling for $1.6 million = in=20 2011. Even landlords are doing everything possible to protect their = portfolios=20 -- from giving away free rent for a year to dropping rental rates to = 2001=20 levels. Owners are looking to reduce their losses. Consequently, this = puts more=20 power and control in the hands of the buyer. Additionally, given the = fact that=20 real estate owners are cash poor and looking to convert their assets, = there is a=20 large supply of land and existing buildings on the market. =
About the Author
Michael=20 Regina is the co- founder and owner of Big Sky=20 Enterprises =96 an industry = leading commercial=20 real estate developer, design/builder and finance firm that strategizes, = executes and oversees every aspect of a project development life cycle = to=20 provide clients with single professional contact-point control.=20

2. Rock Bottom = Interest=20 Rates
It may be difficult to remember the last time commercial = interest rates=20 were this low. It was, in fact, approximately 20 years ago, dating back = to the=20 early 1990s. Comparative analysis on new commercial interests in certain = markets=20 shows that, today, it is cheaper to own a building than to rent, opting = to=20 forego paying someone else's mortgage when rates are so low. Like owning = a=20 house, commercial real estate should also be viewed as a long-term = investment=20 where it doesn't make sense to just throw money at a landlord each = month. In=20 today's market, it's a great time to buy and build. =  
 
3.=20 Streamlined Processes
Despite downturns, one thing that is full steam = ahead=20 is streamlined processes. Even five years ago, it seemed to take a = lifetime to=20 get any new project approved through various local, county and state = governing=20 agencies. This is definitely not the case today. Now, it appears that = these same=20 agencies are starving for fees and are desperate for new projects, when = one=20 bears in mind that the fees new development brings support many of these = agencies.
It's not uncommon for townships to call construction firms = inquiring about new submissions. These agencies need to support the = departmental=20 staff who process project paperwork and are eager to know what's in the=20 minimized pipeline. The combination of technological efficiencies and = eager=20 reporting agencies have swung the pendulum back in the favor of = construction=20 companies who used to be at the mercy of the paperwork bottleneck. In a = slow=20 economy, there is a greater ability to control more parts of the process = in=20 relation to agencies, which makes it a great time to build. =  

4.=20 Reduced Cost of Labor, Materials and Services
The law of economics = states=20 that when there is an excess supply of any good or service the cost of = that good=20 or service will drop. This is the case with the cost of labor, goods and = professional services. Various trades are constantly seeking work from = any=20 projects that can be generated during this downturn. This was quite = different in=20 2006 when these same companies were turning down work just as fast as = they were=20 growing business with the surplus work they already had. Today, = companies are=20 willing to cut their prices in order to keep their employees, resulting = in=20 decreased labor and services costs. =
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