Adaptive Reuse: Creative Reimagining of Former Office Space to Address Differing Demands
March 27, 2023 —
Cait Horner, Allan C. Van Vliet & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law BlogEmpty office buildings downtown. A housing shortage in almost every major market. Is there a way to address both issues at once by converting historic but underutilized office buildings into apartments and condos in city centers? It’s an idea that has been discussed, and in some cities, implemented in recent years. But while the idea seems simple enough—repurpose existing office space for residential and mixed-use projects—there are some real challenges limiting the feasibility of large-scale office to residential conversion.
The commercial real estate market is facing an uncertain future. Even as some companies have started requiring that their workers return to the office, many continue to operate under their hybrid or fully remote working models, which companies may commit to permanently. And while some big cities have seen office occupancy levels increase in the past few months (CBRE notes that Austin and Houston both saw occupancy levels above 60% in January, up around 25% from 2022 levels), the ongoing impact of COVID-19 and uncertainty in the global financial markets are keeping many office buildings empty in major cities around the country. Those tenants who are returning to the office are focusing their search for office space on high-quality, sustainable, amenity-filled spaces to entice workers to return to the office. This flight to quality leaves some older and, in many cases, architecturally relevant, office buildings behind. As a result, there are growing opportunities for the potential adaptive reuse of these existing underutilized structures.
Reprinted courtesy of
Cait Horner, Pillsbury,
Allan C. Van Vliet, Pillsbury and
Adam J. Weaver, Pillsbury
Ms. Horner may be contacted at cait.horner@pillsburylaw.com
Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Hybrid Contracts for The Sale of Goods and Services and the Predominant Factor Test
February 15, 2021 —
David Adelstein - Florida Construction Legal UpdatesFlorida’s Uniform Commercial Code (also known as the UCC) applies to transactions for goods. “Goods” is defined by Article II of the UCC as “all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (chapter 678) and things in action.” Fla. Stat. s. 672.105(1).
The UCC does NOT apply to transactions for services. Transactions for services are governed by common law.
Oftentimes, transactions or contracts include BOTH goods and services. In this scenario, referred to as a hybrid contract, does the UCC or common law apply? In this scenario, courts apply the predominant factor test to determine whether the UCC or common law governs the transaction:
Whether the UCC or the common law applies to a particular hybrid contract depends on “whether the[ ] predominant factor, the [ ] thrust, the[ ] purpose [of the contract], reasonably stated, is the rendition of service, with goods incidentally involved (e.g., contract with artist for painting) or is a transaction of sale, with labor incidentally involved (e.g., installation of a water heater in a bathroom).” In such instances, the determination whether the “predominant factor” in the contract is for goods or for services is a factual inquiry unless the court can determine that the contract is exclusively for goods or services as a matter of law.
Allied Shelving & Equipment, Inc. v. National Deli, LLC, 154 So.3d 482, 484 (Fla. 3d DCA 2015) (citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Nine ACS Lawyers Recognized as Super Lawyers – Two Recognized as Rising Stars
August 26, 2024 —
Ahlers Cressman & Sleight PLLCGoing outside the norm of our blogs, which usually discuss construction related issues, Ahlers, Cressman, & Sleight is pleased to announce that nine members of our firm have been selected to the 2024 Washington Super Lawyers list.
Each year, a rigorous process that involves a nomination by peers and a third-party verification of honors, awards, verdicts, settlements, and other criteria relating to their work as an attorney, aims to select no more than five percent of the lawyers in Washington state from no more than seventy practice areas for this distinction. As mentioned, the first step in the process is to be evaluated on their work as an attorney, next candidates are evaluated by their peers and given ratings based on the information known about their work. Finally, candidates are grouped into four firm-size categories and final selections are made. The grouping process is done so that candidates are compared fairly to their peers by firm size, eliminating the potential unfairness that comes with comparing large and small firm outcomes and attorney practices.
The Rising Star list involves an even narrower criteria than the Super Lawyers list. The initial process is the same, however, candidates for the Rising Stars list must be under the age of forty or have less than ten years of experience. For this category less the two and a half percent of lawyers in Washington are selected, making this quite a feat for those who have accomplished the honor.
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Ahlers Cressman & Sleight PLLC
What to do about California’s Defect-Ridden Board of Equalization Building
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFJerry Brown recently signed into law a bill requiring the state of California “to assess its properties in the Sacramento area and develop long-term plans for renovating, replacing or selling the most troublesome buildings,” according to SF Gate. Some say the Board of Equalization building, which was built for $80 million and then repaired for $60 million has construction defects, is “jeopardizing the health and safety of public employees.”
Current problems include “[f]looding, mold, falling windows and free-falling elevators,” reported SF Gate. Furthermore, recently, “three employees filed a $75 million lawsuit against the state, alleging toxic mold in the building is causing extreme fatigue, skin rashes, persistent flu-like symptoms, respiratory illnesses, frequent headaches, memory lapses and fears of cancer.”
“This is a disaster,” Assemblyman Roger Dickinson, D-Sacramento, who authored the bill regarding assessing state capitol buildings, told SF Gate. “It endangers the health and safety of employees and the public alike. And it is costing state taxpayers tens of millions of dollars.”
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Ritzy NYC Tower Developer Says Residents’ Lawsuit ‘Ill-Advised’
January 17, 2022 —
Chris Dolmetsch - BloombergThe developers of a Manhattan skyscraper that has become one of New York City’s toniest residences said the condo board is trying to squeeze money out of them with a lawsuit that claims bogus design flaws.
The board is seeking $250 million from builders of the 1,396-foot residential tower at 432 Park Avenue that opened in 2015 on the so-called Billionaire’s Row. Their suit alleges the company that developers CIM Group and Macklowe Properties formed to build the structure failed to take into account its unusual height, leading to flooding, noise, vibrations and elevators that are prone to malfunctions.
In a response to the suit filed Wednesday, the company called the building “a treasure” and the suit was “ill-advised.” While the structure needed to be “fine-tuned” when residents started to move in, the board stopped the builders from accessing the facilities and finishing the job “while manufacturing an ever-increasing list of demands,” most of which were not required, according to court filings.
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Chris Dolmetsch, Bloomberg
Insurers' Motion to Knock Out Bad Faith, Negligent Misrepresentation Claims in Construction Defect Case Denied
August 27, 2013 —
Tred Eyerly - Insurance Law HawaiiHaving previously decided that construction defect claims did not arise from an occurrence and were consequently not covered under Hawaii law, the Hawaii Federal District Court refused to dismiss the insured's second amended counterclaim alleging various claims for relief. Ill. Nat'l Ins. Co. v. Nordic PCL Construc., Inc., 2013 U.S. Dist. LEXIS 108932 (D. Haw. July 31, 2013).
In earlier proceedings, the court determined that the Nordic's allegedly deficient performance on construction contracts was not an "occurrence." The court also rejected Nordic's argument that the Hawaii legislature's Act 83 required the court to deviate from the Ninth Circuit's opinion in Burlington Ins. Co. v. Oceanic Design & Constr., Inc., 383 F.3d 940 (9th Cir. 2004) or the Hawaii Intermediate Court of Appeals' decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010).
Admiral now moved for summary judgment on its complaint and for dismissal of Nordic's second amended counterclaim, alleging bad faith and negligent misrepresentation, among other counts. Summary judgment as to the Safeway claim was denied.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Housing Starts in U.S. Little Changed From Stronger January
March 19, 2014 —
Jeanna Smialek – BloombergHousing starts in the U.S. were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction.
The 0.2 percent decrease to 907,000 homes at an annualized rate last month followed a revised 909,000 pace in January, figures from the Commerce Department in Washington showed today. The median estimate in a Bloomberg survey called for a 910,000 rate after a previously reported 880,000 in January.
Warmer temperatures, a pickup in demand during the spring selling season and limited housing supply may help fuel further gains in new residential construction. The outlook for the industry later this year depends on whether hiring picks up enough to overcome higher mortgage rates and home prices.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net
Wendel Rosen Construction Attorneys Recognized by Super Lawyers and Best Lawyers
August 30, 2017 —
Wendel Rosen Black & Dean LLP - California Construction Law BlogTwo members of Wendel Rosen’s
Construction Practice Group were recognized recently.
Garret Murai was selected for inclusion in the 2017 list of Northern California Super Lawyers and
Matthew Graham was selected for inclusion in
The Best Lawyers in America© 2018 edition. Garret Is co-chair of the firm’s Construction Practice Group and Matt is a 30+ year veteran of construction law.
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