Nine states have signed a joint agreement to accelerate the transition to residential building electrification by significantly expanding the use of heat pumps to meet heating, cooling, and water heating demand.

The Memorandum of Understanding was signed by directors of environmental agencies from California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island. These states set a shared goal for heat pumps to meet at least 65% of residential-scale HVAC and water heating shipments by 2030 and 90% by 2040.

Participating states will collaborate to collect market data, track progress, and develop an action plan within a year to support the goals. The agreement emphasizes collaboration with key stakeholders, including heat pump manufacturers and HVAC installers.

The states also committed to promote installation of zero-emission, grid-interactive technologies in existing state buildings. States will aim to direct at least 40% of efficiency and electrification investments to benefit low-income households.

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NEW YORK – On a recent afternoon, Joey Chilelli, managing director of a commercial real estate investment and advisory firm, joined a small crew of construction workers as he stepped into a large cage-like mesh hoist elevator installed on the outside of a steel and glass office tower in the financial district of Manhattan.

Amid the cacophony of jackhammers and cement mixers, the elevator made a few stops on its way up as workers stepped off with trolleys carrying bags of cement before reaching the 28th floor of 160 Water Street. There, set back from the perimeter of the roof, two more floors were rising.

By spring, the 1972-built, 24-storey tower, which housed more than 1,200 offices until October 2021, will metamorphose into a taller residential building with 30 floors and 588 apartments, including a landscaped communal rooftop, a co-working space, gym, spa and other amenities.

Chilelli, who was visiting the site to check on progress, says the pandemic spurred the office to residential conversion.

“When 2020 hit, the office market took a pretty big turn,” he says. “There were no office tenants. Nobody knew what was going on, what the future would hold. But we felt conviction in the multifamily space.”

Plus, Vanbarton Group LLC, where Chilelli works, had done this before. In 2017, the tower next door, at 180 Water Street, went through a similar conversion resulting in 573 apartments led by Vanbarton and a development partner.

The pandemic has transformed how Americans live and work, which has had a domino effect on many sectors of the economy, but none as pronounced as the commercial real estate market in big cities. As remote and hybrid work has taken root, many companies have chosen to consolidate their footprint and move into smaller offices or even eschew office space altogether, leaving many office buildings in big cities languishing without tenants.

The overall U.S. office vacancy rate hit a 30-year-high of 18.2% earlier this year, according to CBRE. This has also meant that businesses that tended to office workers such as delis, coffee shops, or salons in big cities have been hit hard, with many of them shuttering.

Office-to-residential conversions have the potential to stop the erosion of a crucial tax base while restoring the vibrancy of cities, address a national housing shortage and affordability crisis and reduce greenhouse gas emissions, say proponents including the White House, which recently released a guidebook with over 20 federal programs across six federal agencies aimed at supporting conversions.

“It’s a step in the right direction,” says Stijn Van Nieuwerburgh, professor of finance and real estate at Columbia Business School, who along with Arpit Gupta and Candi Martinez co-authored a working paper on office-to-residential conversions for the National Bureau of Economic Research. “At the end of the day, we have too much office space, we have too little housing, and we also have too much CO2 emissions in our cities coming from buildings.”

ZoomtownsWanted: Knowledge workers in the American Heartland

The real estate sector is a major target for emissions reduction policies as buildings account for 29% of the U.S. as a whole. The rehabilitation of existing buildings produces 50% to 75% fewer carbon emissions than new construction, according to the paper.

According to the White House guidebook, the 2022 Inflation Reduction Act offers climate-focused funding that can be used for commercial to residential conversions and help buildings achieve zero emissions as the conversions typically require the installation of all-new plumbing, new heating and cooling systems, new windows, doors and walls.

Chilelli says the converted 160 Water Street will have 75% less carbon emissions than the old office building and its carbon emissions will be well under the energy efficiency and greenhouse gas emissions limits set by New York’s City’s ambitious climate legislation, known as Local Law 97, for 2024 and 2030 that limits pollution from the city’s largest buildings.

What are the challenges of office-to-residential conversions?

Around 15% of office buildings in the commercial districts of the 105 largest cities in the U.S. are physically suitable for conversion, according to the National Bureau of Economic Research working paper analysis. Discounting properties that still have a large share of long-term tenants in place reduces the inventory to 13%, and removing relatively clean buildings brings it closer to 11% of properties.

“A lot of office buildings are very large,” says Van Nieuwerburgh. “Think about a full block, large skyscraper in a major city. The floor plates are very, very deep.”

That means that they are not easy to divide into apartments because a lot of space in the interior of the building doesn’t get enough light or air.

“So you have to do something quite extensive, such as drilling a light well in the middle of a building where you literally take out a piece of the building in the middle so that you can have some light and air,” he says. “So that obviously creates a lot of extra costs and architectural complications.”

For instance, at 160 Water Street, three blind shafts had to be carved out through the center of the building, says Robert Fuller, the lead designer and architect. The lost floor area was then relocated to the top of the building.

Another issue developers face is regulatory challenges such as zoning laws that don’t allow residential buildings in certain commercial zones or building code regulations that make transformations difficult.

In New York City, for example, only buildings built before 1977 or 1961 are eligible for conversions, depending on where they are located.

In August, New York City Mayor Eric Adams unveiled plans to rezone manufacturing areas in Midtown Manhattan (home to a high density of office buildings) and make zoning changes allowing buildings built before 1990 eligible for conversion to housing. Both changes will require City Council approval.

“These outdated regulations are holding us back,” says New York City Planning Director Dan Garodnick. “We also think that there should be a tax incentive available that would both incentivize the opportunity to create housing and also include affordable housing as part of the mix.”

A proposal that would have extended a controversial tax exemption, commonly known as 421a, that served to incentivize developers to build affordable housing in exchange for tax breaks failed in the state Legislature earlier this year.

Streamlining the permitting process can also expedite the conversion timeline, say experts.

Then, of course, there’s the economics of conversion. For instance, how strong is the apartment rental market when a developer is done with their conversion?

The typical conversion is financially feasible in New York, San Francisco, San Jose, Boston, Washington, D.C., and Denver, according to the National Bureau of Economic Research report. These are markets where apartment rents are high enough to overcome the purchase cost of the office building and the cost of conversion, the authors say.

Fuller, the architect who led the design at 160 Water Street, says his firm, Gensler, has been studying quite a few underperforming buildings over the two years to see if they are suitable.

“For as much talk and interest in the subject, I’ll say relatively few projects move forward because these are complicated and the ability to make them work financially is sometimes challenging,” he says.

The appeal of conversions for developers

The timeline for completion of the transformation generally takes about 30 months, inclusive of the permitting phase. This process is expedited in comparison to a ground-up development, which could take well over four to five years. In New York City, a conversion might cost $300 to $400 per square foot vs. $600 to $700 per square foot in a brand-new building, according to Chilelli.

“When we were on the design of this in 2021, we started to see the multifamily market really roar back, it really took off in New York,” says Chilelli.

At 160 Water Street, which will have studios, one- and two-bedroom apartments, rents will be market rate and range from $3,500 to $7,500.

Vanbarton Group has another conversion in the works – an old WeWork building in Midtown Manhattan will be converted into a residential tower.

Earlier this year, California approved $400 million to incentivize commercial-to-housing conversions. Last year, Washington, D.C., launched a $2.5 million, 20-year tax abatement program for owners who add at least 10 housing units and change a building’s use in the downtown area, with 15% of those units being set aside for affordable housing.

“I think now is the time to act. The longer we wait, the more the problem will fester, the larger the vacancies will be and so the more intractable the problem will become,” says Van Nieuwerburgh.”Cities can play an important role to make that as simple and easy as possible.”

Swapna Venugopal Ramaswamy is the housing and economy reporter for USA TODAY. Follow her on Twitter @SwapnaVenugopal

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By Magaly Muñoz

Post Staff

Douglas Stewart has spent the last 15 years making his space at the Oakland Cannery into a home with artwork on every free space of the walls and vinyl records covering the tabletops.

Stewart is a man of many titles, including teacher, activist, advocate and above all, artist. He’s worked in arts preservation, poetry and has helped in juvenile justice centers and prisons to support vulnerable communities dealing with mental health and wellness issues.

The Oakland Cannery is more than a residence for Stewart and its other tenants, it’s also their workspace. However, after 47 years, the residents have been issued a 120-day eviction notice.

Problems at the Cannery began in 2016 when Green Sage, a Colorado-based cannabis cultivation company, acquired the property at 5733 San Leandro St. Their plan was to use this and other similar sites in the area for large-scale cannabis production.

“Unfortunately, however you want to look at it, Green Sage took over as landlords right around the time that the licenses and the Oakland Cannery got deemed as a ‘green zone’. And that’s when they started kicking out the commercial tenants below us and really started activating the space for cannabis operators and operations,” Stewart said.

Stewart and Alistair Monroe, son of the late painter Arthur Monroe who is responsible for the Cannery’s transformation into Oakland’s first live-work residence, claim their homes became unlivable due to the property owners’ neglect.

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Both told stories of poor plumbing, electrical problems, lack of security and maintenance workers entering their homes unannounced. Despite numerous complaints and maintenance, requests, the property owners failed to address the problems.

“They had a lawless mentality to say that we were not residential use, we were commercial use, and we had to do as they say,” Monroe said.

Stewart supports safe cannabis cultivation and equal market opportunities. He is critical of Green Sage for saturating the market and hindering local business growth in Oakland.

Holding a micro-license for distribution and sales, Stewart benefits from an equity program that aids Oakland residents impacted by the War on Drugs with permits, grants and interest-free loans.

Stewart tried to use the Cannery’s commercial space for his license but was denied by the property owners. His efforts to rent other city spaces also ended in eviction.

“I can’t really afford to find a new place for my business license to hang up after being displaced by my last business operations location and then also having to try to juggle and figure out where I’m gonna be laying my head within the next three months after the Ellis Act eviction,” Stewart said.

Three years into their ownership, Green Sage defaulted on a $55 million loan from a Canadian private commercial mortgage lender, Romspen. The managers of Green Sage have since disappeared.

In September, Ellis Act evictions were served to residents of the Oakland Cannery enabling the landlords to take their properties off the market and remove all tenants.

According to Wikipedia, the Ellis Act is a 1985 California state law that allows landlords to evict residential tenants to “go out of the rental business” in spite of desires by local governments to compel them to continue providing rental housing.

Mark Mersel, an attorney who represents Romspen, states that after Green Sage defaulted on their loan, the mortgage company had to foreclose on the property.

He stated that many, if not all, of the current tenants at the Oakland Cannery had not paid rent or did not have valid leases with the property, and that they are all “basically squatters.”

“All Romspen is trying to do is get this property to operate, not be a blight on the neighborhood, and operate it for its industrial intended purpose,” Mersel said.

Monroe suspects the evictions were retaliation for lawsuits and complaints about unlivable conditions in the building and says he saw this coming from a mile away.

“The first day the landlords were on site they just openly said ‘we’re going to be removing you guys,’” Monroe said.

Eddie Ytuarte from the Oakland Tenants Union asserts that under the Ellis Act, unless the tenants were given relocation payments at the time of the notice, the eviction is invalid.

“A lot of things that landlords refuse to do are actual code violations,” Ytuarte stated. “For instance, if the plumbing is no good, or if the heat is insufficient, it’s breaking city codes and if the tenants are under rent control, they could petition for lower rents or they could sue in small claims court.”

Neither Stewart nor Monroe received relocation payments, only copies of checks via email.

Ytuarte suggested that tenants looking to fight eviction should seek pro-bono legal services or find an attorney who will take on the case for a much lower rate.

Monroe said that they tried those options, but to no avail. In other efforts, he and Stewart have hosted events to bring in city officials, like Mayor Sheng Thao and almost every Oakland City Council member to plead their case and find support from their resources.

A City of Oakland’s public information officer (PIO) wrote in an email to the Post that they have attempted to connect local developers who want to preserve the live-work space to the property owner, but the property owner has not shown any interest.

“The City has been working to protect the Oakland Cannery and other live/work communities from displacement pressure due to cannabis for many years. In 2018, the City adopted legislation prohibiting any type of cannabis business in live/work spaces. Then in 2023 it went further, prohibiting cannabis cultivation on any part of a property that contains work/live spaces,” said the PIO.

“Unfortunately, no local protections can prevent landlords from filing an eviction under the Ellis Act, as that is California State law,” the PIO concluded.

Councilmember Kevin Jenkins, who represents District 6 where The Cannery is located, stated that beyond moral support, there’s not much else that his office can do to help the residents.

“I think displacement has been a big issue in the last 15 to 20 years. We are losing a large share of our African American population from Oakland. A lot of them are being displaced and being forced to move outside of the county and outside the state,” Jenkins said.

Monroe and Stewart stopped paying rent in response to the mistreatment of Green Sage and the COVID-19 pandemic. The eviction moratorium protected tenants from eviction due to unpaid rent during the pandemic.

City ordinance states that in order for a property owner to terminate residency, they have to provide a good or just cause. The Ellis Act is considered a just cause.

Ultimately, it’s not about the buyout price for Monroe or Stewart. They want The Cannery to remain an affordable live-work space for artists.

“It’s more than just having a place to lay my head. It’s a place of advocacy. It’s a place for art to be preserved. For a culture to be preserved and for a community to be lifted,” Stewart said.

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SAN FRANCISCO, November 04, 2023–(BUSINESS WIRE)–In a strategic move to meet the ever-evolving needs of its clients, Priority One Logistics LLC is thrilled to announce its recent acquisition of “Everything Goes Movers.” This significant development, set against the backdrop of the San Francisco Bay area, marks a giant leap into the residential moving market, redefining the landscape of household services.

Under this exciting expansion, Priority One Logistics LLC now offers a comprehensive suite of services, ensuring a seamless and stress-free moving experience for clients. These services include packing, unpacking, crating, furniture assembly, long-distance moving, handling large and heavy items, senior moving, storage solutions, furniture transport, commercial services, piano moving, local relocation, and specialized equipment handling, all delivered with our signature white-glove service.

“At Priority One Logistics LLC, our mission has always been to provide complete solutions for our clients’ moving needs,” said Mitch Montoya, Owner at Priority One Logistics LLC. “This acquisition is a testament to our unwavering commitment to offering top-tier services. Your trust and support are the driving forces behind our excellence, and we’re excited to extend our expertise and professionalism to your residential moves.”

About Priority One Logistics LLC:

Priority One Logistics LLC is a leading logistics and moving services company, dedicated to providing a wide range of solutions for residential and commercial clients. With a focus on customer satisfaction and service excellence, the company continues to set new standards in the industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231104275564/en/

Contacts

For media inquiries, please contact:
Name: Michael Lynch
Phone: (727) 216-7406
Email: support@p1logisticservices.com
Website: www.p1logisticservices.com

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New Hitachi air365 Hybrid system automatically switches between heat pump and furnace operation according to outdoor temperature sensors for a more efficient performance year-round

IRVING, Texas, Sept. 13, 2023 /PRNewswire/ — Johnson Controls-Hitachi Air Conditioning today introduced the Hitachi air365 Hybrid dual fuel system, which combines a heat pump and furnace to provide efficient, economical home comfort year-round while reducing carbon emissions. The air365 Hybrid system features an electric Hitachi Mini VRF heat pump as the primary heating and cooling source and an innovative dual fuel module that attaches to a home’s new or existing gas furnace.

“By primarily utilizing electricity, dual fuel heat pump systems are a more sustainable way to heat and cool homes, providing homeowners with a way to effortlessly cut their own carbon emissions and make a positive impact on the environment,” said David Budzinski, president, global residential and light commercial at Johnson Controls and Johnson Controls-Hitachi Air Conditioning. “Sustainability is at the heart of everything we do, and the Hitachi air365 Hybrid dual fuel system is proof of our commitment to developing best-in-class solutions that prioritize the environment while delivering superior comfort and lower operating costs.”

When temperatures are extremely low, most heat pumps rely on energy-intensive, electric resistance “strip” heating, which can significantly increase utility costs and strain the electric grid. To maximize efficiency and not compromise heating performance, it’s often more sustainable to use the furnace as a backup heat source during the coldest days of the year. When the air365 Hybrid system is in heating mode, a smart sensor monitors the outdoor temperature. If it reaches a temperature where the heat pump cannot efficiently meet the indoor heating demand, it automatically switches from the heat pump to the furnace. This makes it possible for homeowners to easily optimize efficiency and comfort throughout the winter.

Story continues

In addition to reducing energy costs, electric heat pumps make it possible for homeowners to decarbonize their heating and cooling. As a result, there are many federal, state and local tax incentives encouraging homeowners to upgrade to energy efficient heat pumps that can greatly reduce the upfront cost of new equipment. air365 Hybrid dual fuel systems can qualify for multiple rebates and incentives, such as the 25C energy efficient home improvement tax credit expanded by the Inflation Reduction Act (IRA). Homeowners should talk to their contractors about these opportunities to maximize payback.

The Mini VRF heat pump leads the industry in energy efficiency and is economical to run. For example, when pairing a Hitachi Mini VRF heat pump with a YORK® YP9C Modulating Gas Furnace as part of a dual fuel system, homeowners can cut utility costs by up to two thirds compared to conventional heating systems. The Mini VRF heat pump is available in three different models to better meet a variety of residential applications and offers reliable performance across a wide range of temperatures – as low as 23 F (-5 C) outdoor ambient temperature in cooling mode and as low as -4 F (-20 C) in heating mode. All models feature night shift, which allows the outdoor unit to operate very quietly, as low as 44 decibels or 10 decibels less than the average household refrigerator.

To learn more about the Hitachi air365 Hybrid dual fuel system, please visit www.hitachiaircon.com/air365hybrid. To find a Johnson Controls-Hitachi Air Conditioning contractor, please visit www.hitachiaircon.com/us/where-to-buy/residential-distributors.

About Johnson Controls-Hitachi Air Conditioning

Johnson Controls-Hitachi Air Conditioning is a global air conditioning manufacturer established in October 2015 as a joint venture between Johnson Controls and Hitachi Appliances, Inc. (now Hitachi Global Life Solutions, Inc.) Approximately 15,000 employees have offered high-quality residential and commercial products, services, and solutions to our customers. We have released the most diverse HVAC products in the global market including ductless solutions, chillers and residential air conditioning solutions that exceed customer expectations at all times.

Media Contacts
Melissa Talbott
Manager, Global Products, Public Relations & Media
Johnson Controls
melissa.talbott@jci.com

Silvana Vacca
Head of Public Relations & External Communications, EMEALANA
Johnson Controls-Hitachi Air Conditioning
silvana.vacca@jci-hitachi.com

www.us.hitachi.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/johnson-controls-hitachi-air-conditioning-launches-emissions-reducing-residential-hvac-dual-fuel-heat-pump-system-301926361.html

SOURCE Johnson Controls

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Forget about bank doom loop stories over residential mortgages. Instead put the spotlight where it belongs.

Not Residential!

A reader asked me to comment on Peter Schiff: Banks Have a Bigger Real Estate Problem Today Than They Did in 2007.

Banks are more vulnerable to the housing market now than they were in 2007.

Most people in the mainstream will scoff at that statement. They’ll tell you that the situation is very different today. After all, we don’t have a big problem in the subprime mortgage market. We’re not seeing a big spike in defaults. That’s true. The problem is different this time. And it’s actually worse.

So, what’s the problem?

As Peter Schiff explained in a recent podcast, the problem this time is the mortgages themselves.

As Peter points out, a 3% mortgage is a huge asset for the borrower. But it’s a huge liability for the lender. So, defaults would benefit the banks. They could theoretically repossess the home and resell it to somebody else and write a mortgage at a much higher rate.

So, this is a very different crisis. But it’s worse because they’re losing money on every single mortgage they have whether or not they go into default. … So, this is bigger. It is a bigger problem for the banks. They’re losing more money, and they will lose more money now than they did in 2008. That means we’ll need an even bigger bailout. All these ‘too big to fail’ banks have an even bigger problem now than they did then, and it’s going to take an even bigger round of QE to bail them out. The problem is how’s the Fed going to do that when inflation is as high as it is and going higher?

Total Silliness

For starters, banks tend to securitize mortgages they originate or dump them on Fannie Mae.

Second, few will be walking away. There is too much equity for a default crisis as happened in 2007.

Third, the Fed has a liquidity program (BTFP explained below) to help banks paper over losses.

Runs on banks have stopped. If bank runs start again, it will not be due to residential mortgages.

Fed’s Emergency Liquidity Program

BTFP funding data from the St. Louis Fed

The Fed started the BTFP program in the wake of the collapse of Silicon Valley Bank.

Small regional banks overleveraged in long term treasuries and were clobbered by paper losses and then bank runs.

In response, the Fed agreed to shield the banks from losses by offering swaps at par value, ignoring the losses.

BTFP Terms

• Eligible Collateral—Direct obligations of certain U.S. government agencies, including the U.S. Department of the Treasury, government-sponsored enterprises such as Fannie Mae and Freddie Mac, and the Federal Home Loan Banks. In addition, mortgage-backed securities issued and/or fully guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac are eligible.
• Loan Terms—Institutions may borrow up to the value of eligible collateral pledged. Collateral is valued at par, i.e., with no haircuts. Loans can be prepaid at any time without penalty. The rate is fixed for the life of the loan (up to one year) and is calculated by adding 10 basis points to the overnight index swap rate. The rate is published daily on the Discount Window website. Advances will be available until March 11, 2024, or longer if the program is extended.

Liquidity, Not Solvency Issue

This is a liquidity issue, not a solvency issue. The US is not going to default and the treasuries are not worthless. The Fed wanted to stop bank runs and did so by a method that hides losses.

However, the paper losses are still real, even if hidden in reports. This has an impact on banks willingness to make loans in a rising interest rate environment.

For further discussion, please see The Fed’s Emergency Liquidity Program, BTFP, is Over $100 Billion, What’s Going On?

Commercial Real-Estate Doom Loop

The Wall Street Journal reports Real-Estate Doom Loop Threatens America’s Banks, but the loop is commercial.

Bank OZK had two branches in rural Arkansas when chief executive officer George Gleason bought it in 1979. The Little Rock lender today has billions of dollars in commercial real-estate loans, including for properties in Miami and Manhattan, where it is helping fund the construction of a 1,000-foot-tall office and luxury residential tower on Fifth Avenue.

Regional banks across the country followed a similar playbook, gorging on commercial real-estate loans and related investments in big cities over the past decade.

With the commercial real-estate market now in meltdown, those trillions of dollars in loans and investments are a looming threat for the banking industry—and potentially the broader economy. Banks’ exposure is even bigger than commonly reported. The banks are in danger of setting off a doom-loop scenario where losses on the loans trigger banks to cut lending, which leads to further drops in property prices and yet more losses.

The doom-loop scenario is starting to play out in big cities where office vacancies have soared. Real-estate investors that are unable to refinance their debt, or can only do it at high rates, are defaulting. The lenders, no longer getting the debt payments, often have to write down the value of those mortgages. Sometimes the bank ends up owning the property.

“The plumbing is clogged right now,” said Scott Rechler, chief executive of real-estate investor RXR. “And that is going to create a backup that will eventually overflow on the commercial real-estate markets and on the banking system.”

US Regional and Small Banks’ CRE Exposure Could Pressure Ratings

Fitch reports US Regional and Small Banks’ CRE Exposure Could Pressure Ratings

U.S. banks with less than $100 billion in assets are more susceptible to deteriorating commercial real estate (CRE) fundamentals than larger banks, which could add to ratings pressure, given their higher relative exposure as a percentage of assets and total capital, Fitch Ratings says.

The tight monetary environment has placed pressure on most CRE properties’ collateral values and transaction volumes while structural changes in demand for office space have adversely impacted occupancy for that asset class. These factors increase credit risk for banks that have CRE loan concentrations, and are expected to have an impact on asset quality in CRE loan portfolios of U.S. banks.

Banks with more concentrated CRE exposure to office markets, particularly those with much weaker vacancy trends, face moderate stress over the near- to medium-term. For example, larger cities, including San Francisco, Houston, Dallas/Ft. Worth, Washington DC and Chicago had high office vacancy rates as of 1Q23.

BTFP Eligible Collateral

Look again at the BTFP eligible collateral. It includes Fannie Mae, Freddie Mac, Ginnie Mae. It does not include commercial real estate, or any other kind of bank loans.

CRE and other types of bank loans are solvency issues.

By shielding mortgages and Treasuries, the Fed contained any residential mortgage crisis.

The big problem for banks is commercial but the residential housing market is in shambles.

How the Fed Destroyed the Housing Market and Created Inflation in Pictures

The Fed has a big problem of its own making on its hands that will make inflation harder to control.

For discussion, please see How the Fed Destroyed the Housing Market and Created Inflation in Pictures.

The Fed destroyed the housing market, but this will have minimal impact on banks. Commercial real estate is the key issue.

The post Banks Have a Large Actual Property Drawback However It’s Business, Not Residential – MishTalk appeared first on DAILY SAN FRANCISCO BAY NEWS.

Since the COVID-19 pandemic began, more companies have offered remote work options for their employees, or have even switched to working entirely remotely – leaving empty office buildings a new fixture in many cities. In July 2023, Boston’s Planning and Development Agency announced a pilot program to offer incentives to building developers who convert office buildings to residential housing.

As engineers who study buildings, we wanted to know if these empty spaces could be converted to residential buildings, and what hurdles developers would face.

READ MORE: Cities look to revive downtowns by converting offices to housing

While converting office buildings to multi-family residential involves many considerations – including zoning codes, real estate values and structural issues – certain buildings may be good candidates for this type of conversion. Here’s what it would take to remodel these spaces.

Redefining space

First off, the building owners wouldn’t need to make any major structural changes to convert an office building to a residential building. Most office buildings are designed so that the tenants can easily build out the space to suit their needs. This means they can put up walls, take power where they need, and select finishes like flooring, paint and lighting.

With a conversion to multi-family residential, the shell and structural elements of the building would remain, while the building owners could add or move walls to create individual apartments. The costs for this interior remodeling would depend on the how fancy things like the countertops and light fixtures are.

Proper daylighting in a dwelling or office provides a host of benefits.

But remodelers would also need to consider nonstructural building features, like windows. Windows determine the distribution of natural light in each residential unit. Narrower office buildings with more area along the perimeter – and therefore more opportunity for viewing windows – would transition more easily to residential than deep, rectangular-shaped office buildings. No one wants to live in a home with no daylight.

Electricity, fire alarm and telecommunications

Residential and commercial buildings have different electricity needs. Residential buildings have kitchen appliances that require lots of power, but office buildings use more computers, projectors and copy machines – meaning the electrical load would likely be about the same. Office and residential buildings also have similar power needs for lighting.

The electrical load from heating and air conditioning would depend on the type of systems used. While the main electrical service of an office building might be an OK size for a residential building, remodelers would need to add a subpanel to each residential unit. U.S. code requires that all residents have “ready access” to the circuit breakers or fuses supplying their unit.

Residential units, left, and commercial units, right, use space differently and have different electrical, HVAC and plumbing needs. Osvaldo valdes/Wikimedia Commons and Aushist/Wikimedia Commons

Building owners would also need to add more fire alarm devices, since residential buildings have more rooms. They might need to revise the internet, telephone and cable systems, as well, to make sure each residential tenant has access to these services.

Though expensive, these electrical revisions are possible. The biggest hurdles would be adding the subpanels and metering to figure out how much each unit uses.

Heating, ventilation and air conditioning

While commercial buildings usually have centralized HVAC systems, residential buildings need separate HVAC systems and controls for each residential unit. That being said, mid-rise and high-rise apartment buildings often use a centralized HVAC system with variable air volume units in each zone. Variable air volume units work together with a central air handling unit that supplies a constant airflow. Each variable air volume unit then adjusts the air flow for its specific zone. Each smaller apartment would be a zone, but some larger apartments may need multiple zones.

READ MORE: Report warns the cost-of-living crisis may overshadow climate change

Residential buildings typically have a smaller HVAC load than office buildings, meaning the existing HVAC system would be larger than needed for residential reuse. Oversized air conditioning systems often have humidity problems – add to that the fact that residential tenants create more humidity from showering, doing laundry and cooking. The way to mitigate humidity here is through additional exhaust fans. Variable air volume units would also help keep the extra humidity under control. Building owners would need to pay for these additions, as well as ductwork remodeling.

Plumbing and fire protection

In office buildings, most plumbing is centralized, often in the building’s core. For instance, bathrooms tend to be grouped together and located in the same spot on each floor. However, in residential buildings, plumbing is distributed throughout. Each unit typically has its own bathroom and kitchen, and each requires drinking water and sanitary sewer.

The biggest issues here would be the service sizes – or how large the pipes serving the building are – and the interior plumbing system. The service sizes for water and sewer in an office building may not be big enough for residential uses. This would depend on local codes and the number of plumbing fixtures. It’s likely that the pipe for a sewer utility connection would need to be larger for an apartment building than for an office building. Also, the interior plumbing system would need a remodel to serve each residential unit.

Reworking the plumbing for water should be possible. However, reworking the sanitary sewer system would be much more difficult, especially on upper floors. Gravity makes things run downhill, and longer horizontal pipes need more vertical drop to keep things flowing in the right direction. This remodel would require new plumbing chases – vertical cavities that pipes run in – to accommodate the sanitary sewer and vent piping needs. Adding these chases would likely require core drilling of floors. If the owner wanted to invest the money, it would be doable – but expensive.

The fire sprinkler system would likely need revisions once the new walls go up, but the size of the pipe bringing water to the sprinkler system should be pretty close to the right size.

New life for vacant buildings is doable but not easy

No one wants to see office buildings sitting vacant, as vacant buildings can diminish surrounding real estate values. Converting an office building to a multi-family residential occupancy is possible. It would, however, not be cheap.

But office buildings that are due for a remodel or upgrade anyway could be great candidates for this type of reinvention. If the building systems – HVAC, plumbing, electrical – are due for replacement, the project becomes more cost effective. With demand for rental units outpacing growth in new supply, and many cities like San Francisco and Boston offering incentives to convert, there is potential here. For someone with a creative vision and a building in the right location, this could be a successful and innovative project.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The post Evaluation: Right here’s what it might take to show empty workplace buildings into residential housing appeared first on DAILY SAN FRANCISCO BAY NEWS.

This article is republished from The Conversation. Read the original article.

Since the COVID-19 pandemic began, more companies have offered remote work options for their employees, or have even switched to working entirely remotely—leaving empty office buildings a new fixture in many cities. In July 2023, Boston’s Planning and Development Agency announced a pilot program to offer incentives to building developers who convert office buildings to residential housing.

As engineers who study buildings, we wanted to know if these empty spaces could be converted to residential buildings, and what hurdles developers would face.

While converting office buildings to multi-family residential involves many considerations—including zoning codes, real estate values and structural issues—certain buildings may be good candidates for this type of conversion. Here’s what it would take to remodel these spaces.

Redefining Space

First off, the building owners wouldn’t need to make any major structural changes to convert an office building to a residential building. Most office buildings are designed so that the tenants can easily build out the space to suit their needs. This means they can put up walls, take power where they need, and select finishes like flooring, paint and lighting.

With a conversion to multi-family residential, the shell and structural elements of the building would remain, while the building owners could add or move walls to create individual apartments. The costs for this interior remodeling would depend on the how fancy things like the countertops and light fixtures are.

Proper daylighting in a dwelling or office provides a host of benefits.

But remodelers would also need to consider nonstructural building features, like windows. Windows determine the distribution of natural light in each residential unit. Narrower office buildings with more area along the perimeter—and therefore more opportunity for viewing windows—would transition more easily to residential than deep, rectangular-shaped office buildings. No one wants to live in a home with no daylight.

Electricity, Fiire Alarm and Telecommunications

Residential and commercial buildings have different electricity needs. Residential buildings have kitchen appliances that require lots of power, but office buildings use more computers, projectors and copy machines—meaning the electrical load would likely be about the same. Office and residential buildings also have similar power needs for lighting.

The electrical load from heating and air conditioning would depend on the type of systems used. While the main electrical service of an office building might be an OK size for a residential building, remodelers would need to add a subpanel to each residential unit. U.S. code requires that all residents have “ready access” to the circuit breakers or fuses supplying their unit.

Building owners would also need to add more fire alarm devices, since residential buildings have more rooms. They might need to revise the internet, telephone and cable systems, as well, to make sure each residential tenant has access to these services.

Though expensive, these electrical revisions are possible. The biggest hurdles would be adding the subpanels and metering to figure out how much each unit uses.

Heating, Ventilation and Air Conditioning

While commercial buildings usually have centralized HVAC systems, residential buildings need separate HVAC systems and controls for each residential unit. That being said, mid-rise and high-rise apartment buildings often use a centralized HVAC system with variable air volume units in each zone. Variable air volume units work together with a central air handling unit that supplies a constant airflow. Each variable air volume unit then adjusts the air flow for its specific zone. Each smaller apartment would be a zone, but some larger apartments may need multiple zones.

Residential buildings typically have a smaller HVAC load than office buildings, meaning the existing HVAC system would be larger than needed for residential reuse. Oversized air conditioning systems often have humidity problems—add to that the fact that residential tenants create more humidity from showering, doing laundry and cooking. The way to mitigate humidity here is through additional exhaust fans. Variable air volume units would also help keep the extra humidity under control. Building owners would need to pay for these additions, as well as ductwork remodeling.

Plumbing and fire protection

In office buildings, most plumbing is centralized, often in the building’s core. For instance, bathrooms tend to be grouped together and located in the same spot on each floor. However, in residential buildings, plumbing is distributed throughout. Each unit typically has its own bathroom and kitchen, and each requires drinking water and sanitary sewer.

The biggest issues here would be the service sizes—or how large the pipes serving the building are—and the interior plumbing system. The service sizes for water and sewer in an office building may not be big enough for residential uses. This would depend on local codes and the number of plumbing fixtures. It’s likely that the pipe for a sewer utility connection would need to be larger for an apartment building than for an office building. Also, the interior plumbing system would need a remodel to serve each residential unit.

Reworking the plumbing for water should be possible. However, reworking the sanitary sewer system would be much more difficult, especially on upper floors. Gravity makes things run downhill, and longer horizontal pipes need more vertical drop to keep things flowing in the right direction. This remodel would require new plumbing chases—vertical cavities that pipes run in—to accommodate the sanitary sewer and vent piping needs. Adding these chases would likely require core drilling of floors. If the owner wanted to invest the money, it would be doable—but expensive.

The fire sprinkler system would likely need revisions once the new walls go up, but the size of the pipe bringing water to the sprinkler system should be pretty close to the right size.

New Life for Vacant Buildings Is Doable But Not Easy

No one wants to see office buildings sitting vacant, as vacant buildings can diminish surrounding real estate values. Converting an office building to a multi-family residential occupancy is possible. It would, however, not be cheap.

But office buildings that are due for a remodel or upgrade anyway could be great candidates for this type of reinvention. If the building systems—HVAC, plumbing, electrical—are due for replacement, the project becomes more cost effective. With demand for rental units outpacing growth in new supply, and many cities like San Francisco and Boston offering incentives to convert, there is potential here. For someone with a creative vision and a building in the right location, this could be a successful and innovative project.

The post Empty workplace areas may be transformed to residential buildings—nevertheless it received’t be reasonably priced appeared first on DAILY SAN FRANCISCO BAY NEWS.

Many office buildings have been left empty since the start of the COVID-19 pandemic. Photo via Getty Images

Since the COVID-19 pandemic began, more companies have offered remote work options for their employees, or have even switched to working entirely remotely – leaving empty office buildings a new fixture in many cities. In July 2023, Boston’s Planning and Development Agency announced a pilot program to offer incentives to building developers who convert office buildings to residential housing.

As engineers who study buildings, we wanted to know if these empty spaces could be converted to residential buildings, and what hurdles developers would face.

READ MORE: Cities look to revive downtowns by converting offices to housing

While converting office buildings to multi-family residential involves many considerations – including zoning codes, real estate values and structural issues – certain buildings may be good candidates for this type of conversion. Here’s what it would take to remodel these spaces.

Redefining space

First off, the building owners wouldn’t need to make any major structural changes to convert an office building to a residential building. Most office buildings are designed so that the tenants can easily build out the space to suit their needs. This means they can put up walls, take power where they need, and select finishes like flooring, paint and lighting.

With a conversion to multi-family residential, the shell and structural elements of the building would remain, while the building owners could add or move walls to create individual apartments. The costs for this interior remodeling would depend on the how fancy things like the countertops and light fixtures are.

Proper daylighting in a dwelling or office provides a host of benefits.

But remodelers would also need to consider nonstructural building features, like windows. Windows determine the distribution of natural light in each residential unit. Narrower office buildings with more area along the perimeter – and therefore more opportunity for viewing windows – would transition more easily to residential than deep, rectangular-shaped office buildings. No one wants to live in a home with no daylight.

Electricity, fire alarm and telecommunications

Residential and commercial buildings have different electricity needs. Residential buildings have kitchen appliances that require lots of power, but office buildings use more computers, projectors and copy machines – meaning the electrical load would likely be about the same. Office and residential buildings also have similar power needs for lighting.

The electrical load from heating and air conditioning would depend on the type of systems used. While the main electrical service of an office building might be an OK size for a residential building, remodelers would need to add a subpanel to each residential unit. U.S. code requires that all residents have “ready access” to the circuit breakers or fuses supplying their unit.

Residential units, left, and commercial units, right, use space differently and have different electrical, HVAC and plumbing needs. Osvaldo valdes/Wikimedia Commons and Aushist/Wikimedia Commons

Building owners would also need to add more fire alarm devices, since residential buildings have more rooms. They might need to revise the internet, telephone and cable systems, as well, to make sure each residential tenant has access to these services.

Though expensive, these electrical revisions are possible. The biggest hurdles would be adding the subpanels and metering to figure out how much each unit uses.

Heating, ventilation and air conditioning

While commercial buildings usually have centralized HVAC systems, residential buildings need separate HVAC systems and controls for each residential unit. That being said, mid-rise and high-rise apartment buildings often use a centralized HVAC system with variable air volume units in each zone. Variable air volume units work together with a central air handling unit that supplies a constant airflow. Each variable air volume unit then adjusts the air flow for its specific zone. Each smaller apartment would be a zone, but some larger apartments may need multiple zones.

READ MORE: Report warns the cost-of-living crisis may overshadow climate change

Residential buildings typically have a smaller HVAC load than office buildings, meaning the existing HVAC system would be larger than needed for residential reuse. Oversized air conditioning systems often have humidity problems – add to that the fact that residential tenants create more humidity from showering, doing laundry and cooking. The way to mitigate humidity here is through additional exhaust fans. Variable air volume units would also help keep the extra humidity under control. Building owners would need to pay for these additions, as well as ductwork remodeling.

Plumbing and fire protection

In office buildings, most plumbing is centralized, often in the building’s core. For instance, bathrooms tend to be grouped together and located in the same spot on each floor. However, in residential buildings, plumbing is distributed throughout. Each unit typically has its own bathroom and kitchen, and each requires drinking water and sanitary sewer.

The biggest issues here would be the service sizes – or how large the pipes serving the building are – and the interior plumbing system. The service sizes for water and sewer in an office building may not be big enough for residential uses. This would depend on local codes and the number of plumbing fixtures. It’s likely that the pipe for a sewer utility connection would need to be larger for an apartment building than for an office building. Also, the interior plumbing system would need a remodel to serve each residential unit.

Reworking the plumbing for water should be possible. However, reworking the sanitary sewer system would be much more difficult, especially on upper floors. Gravity makes things run downhill, and longer horizontal pipes need more vertical drop to keep things flowing in the right direction. This remodel would require new plumbing chases – vertical cavities that pipes run in – to accommodate the sanitary sewer and vent piping needs. Adding these chases would likely require core drilling of floors. If the owner wanted to invest the money, it would be doable – but expensive.

The fire sprinkler system would likely need revisions once the new walls go up, but the size of the pipe bringing water to the sprinkler system should be pretty close to the right size.

New life for vacant buildings is doable but not easy

No one wants to see office buildings sitting vacant, as vacant buildings can diminish surrounding real estate values. Converting an office building to a multi-family residential occupancy is possible. It would, however, not be cheap.

But office buildings that are due for a remodel or upgrade anyway could be great candidates for this type of reinvention. If the building systems – HVAC, plumbing, electrical – are due for replacement, the project becomes more cost effective. With demand for rental units outpacing growth in new supply, and many cities like San Francisco and Boston offering incentives to convert, there is potential here. For someone with a creative vision and a building in the right location, this could be a successful and innovative project.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The post Evaluation: Right here’s what it will take to show empty workplace buildings into residential housing appeared first on DAILY SAN FRANCISCO BAY NEWS.

New survey finds 75 percent of homeowners know someone who has had a house fire, and the majority (57 percent) occurred during the holidays

SAN FRANCISCO, December 01, 2022–(BUSINESS WIRE)–The holidays are all about celebrating traditions with family and friends. Between choosing the right gifts and preparing delicious meals, you have plenty on your plate. Ensuring that you and your loved ones are safe can be an additional stress. Today, Thumbtack, the app used by millions of homeowners across the country to care for their homes, unveiled a new “Holiday Fire Prevention Checklist” that allows homeowners to check their home’s fire risk, and seamlessly book a home service professional to help prevent fires before they happen.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221201005163/en/

Thumbtack unveils new “Holiday Fire Prevention Checklist” (Graphic: Business Wire)

“We recently found that 75 percent of people know someone who has had a house fire, and the majority occurred over the holiday season. Yet, homeowners are reluctant to admit they themselves are at risk of a home fire — with only 1 in 5 stating they believe their own personal risk of a fire is high,” said David Steckel, Thumbtack’s Home Expert. “In order to ensure this holiday season is full of joy and celebration with friends and family, we want to help homeowners understand the causes of house fires — and take action to prevent them. Our goal is to give homeowners peace of mind so they can enjoy their holiday festivities.”

The “Holiday Fire Prevention Checklist” highlights the top projects homeowners should tackle before the holidays, which have the highest risk of starting a fire if left unaddressed, including:

• Hang holiday lights (hire a pro): A professional installer can take this festive (but time-consuming) task off your hands — and ensure you’re not overloading your circuits.

• Sweep chimney (hire a pro): Annual inspections and cleanings are a must to minimize fire hazards, manage creosote buildup, and prevent gas leaks.

• Test smoke and carbon monoxide alarms (DIY): Working alarms are crucial. Testing yearly and replacing every 7 years is the best way to make sure you’re protected.

• Clean dryer vents (hire a pro): Lint buildup causes about 3,000 house fires yearly. Cleaning your dryer’s exhaust pipe can help prevent a fire and improve efficiency.

• Inspect fire extinguishers (DIY): Always keep a working dry chemical fire extinguisher (the dial should be in the “green region”) easily accessible and near the kitchen.

• Trim trees (hire a pro): Keeping your trees trimmed prolongs the life of your roof, cuts down on potential fire hazards, and can prevent wildlife from moving in.

• Deep clean gas range (DIY or hire a pro): Built-up grease can be a big fire hazard — especially with a gas range. Be sure to clean it out every 3-6 months.

• Ensure space heaters are not a hazard (DIY): Only run space heaters in a clear, hazard-free space — and never overnight.

• Do an electrical check (hire a pro): Prevent fire hazards by having a pro check your property (inside and out) for faulty electrical wiring and overloaded circuits.

• Maintain Christmas tree (DIY): Make sure to water your tree, unplug it at night, or set a timer to avoid fires — artificial trees are also a great alternative.

Story continues

In addition to creating a resource hub for homeowners, from December 1 – December 9, 2022, Thumbtack will also be offering consumers $50 off* their next home project so they can prevent fires this holiday season — from hiring a chimney pro to booking a home inspection, and more (terms and conditions apply).

Visit www.thumbtack.com/content/fire-prevention to learn more about potential fire hazards this holiday season, to see how your home ranks on the safety scale, and to book a pro to ensure you’re ready to tackle the holiday season — worry-free.

About Thumbtack

Thumbtack is a technology leader building the modern home management platform. Through the Thumbtack app, homeowners can effortlessly manage their homes — confidently knowing what to do, when to do it, and who to hire. Bringing the $600 billion home services industry online, Thumbtack empowers millions of homeowners to fix, maintain, and improve their most valuable asset. Hundreds of thousands of local service professionals, from painters and plumbers to photographers and more, use the Thumbtack platform to grow their businesses each year. The company is backed by Sequoia Capital, Tiger Global Management, Javelin Venture Partners, Baillie Gifford, and CapitalG, among others.

*Terms and conditions: Thumbtack users may receive $50 off one project, from December 1, 2022 through December 9, 2022. This offer is limited to the first 2,000 users to redeem the discount. Discounts only apply to projects that cost $50 or more (before tax and tip), booked and paid for through Thumbtack. Not all Service Professionals accept payment through Thumbtack. Make sure you check with your Service Professional to confirm they accept payment through Thumbtack before hiring them. The discount will be automatically applied at checkout.

Discounts cannot be stacked (in other words, only one discount can be used per booking), and discounts are for one-time use only. On-Demand bookings (sometimes referred to as “Pro matched by Thumbtack”) are not eligible for discounts. Learn more about On-Demand bookings. Discounts are subject to the terms outlined in our Terms of Use.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221201005163/en/

Contacts

Laura Arrubla Toro
press@thumbtack.com

The post ADDING MULTIMEDIA Thumbtack Creates New “Vacation Fireplace Prevention Guidelines” to Assist Owners Get Forward of Peak Residential Fireplace Season appeared first on DAILY SAN FRANCISCO BAY NEWS.