What's Ahead?

For months now, business news has been depressing. More economists are seeing a greater risk of recession.

Kind of makes one want the year to end, but then what's ahead in 2008? Neither we nor anyone else has the answers. And we're not economists, who like to hedge their prognostications with maybe this or maybe that depending on this or depending on that.

It was Winston Churchill who said, "The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty."

We think that along with all the dismal news of 2007, there also was some good news.

Next week, in Arkansas Business' annual year-end issue, we'll tell you what we think were the top business stories of the year. Looking back is necessary groundwork for looking forward.

A list of problems the U.S. economy is facing, however, could fill this page. High gas prices, housing crisis, credit woes, the falling dollar, health care costs, ad infinitum. Somehow we manage to survive and go on living.

The high gas prices though, could lead to new opportunities in alternative fuels. And Arkansas could be a leader in the field. The housing crisis could bring prices back down in many areas so that more people could buy homes. The credit woes have forced major lenders to take another look at some of their questionable loans. The falling dollar can help the American farmer and others who export their goods. And DefenseNews.com last week was reporting that Dassault Aviation and EADS officials are under pressure to build more of their aircraft in countries outside the Euro zone to offset the weakness of the dollar - a possible boost to Little Rock, where Dassault already finishes all its business jets. Health care costs? OK, the only opportunity we see here is to invest in health care companies.

No doubt there are people out there who have possible solutions to our problems and knowing that, we can look ahead to 2008 with all the anticipation and hope a new year - a new beginning - brings.

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source: banks.com

Canterbury Tales: CAW Missed Bargain

Developed, sold or partially developed? Jay DeHaven isn't sure what is in store for more than 950 acres in west Pulaski County under his fiscal care, land in the Lake Maumelle watershed that Central Arkansas Water earlier passed on buying.

His biggest concern at the moment is battling a proposed six-month moratorium that will prevent his Canterbury Park partnership from any development action.

The Pulaski County Quorum Court on Tuesday will consider the move, which would stop development in the watershed until county subdivision rules and regulations can be modified to better address water quality issues.

"If this moratorium goes in, there will be a class-action lawsuit," DeHaven said. "They're not getting the message that they are violating property owners' rights."

County officials already are in a legal crossfire with two suits filed by DeHaven's group and one by CAW.

Mixed in with the legal tug-of-war over development is DeHaven's offer to sell to the water utility 720 acres along the Big Maumelle River, the main tributary to the largest source of drinking water in central Arkansas.

However, CAW has balked at DeHaven's asking price of $15 million. DeHaven assembled his group's more than 950 acres, most of which represents the bankrupt Winrock Grass Farm operations, in two transactions totaling $5.85 million.

DeHaven believes the dollar disparity is fueling CAW's efforts to thwart his development and perhaps drive down the price.

"There's a big difference between what we paid for the property and what it's worth," he said. "I'm not sure CAW appreciates that."

DeHaven, representing Liberty Bankers Life Insurance Co. of Edmond, Okla., and American Reserve Life Insurance Co. of Dallas, was surprised that CAW didn't participate in the July 5, 2005, foreclosure sale at Winrock.

When the gavel sounded, DeHaven's winning bid of $4.55 million gained control of Winrock's 814-acre spread, about 11 miles west on Highway 10 from Chenal Parkway.

Among the small group of onlookers attending the courthouse auction were Jim Harvey, chief executive of CAW at the time, and Bruno Kirsch, then CAW's chief operating officer.

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source: banks.com

Prefab Housing Is Bigger, Bolder, Better

Pre-fabricated housing was once relegated to government projects and low-income neighborhoods. Now, a new day has dawned. When housing is built off-site and trucked in, it can make for a much more affordable housing option. But it doesn’t have to be small, rickety or ugly. Prefab has spread its wings and landed in some of the most chic, lux neighborhoods imaginable.

Bonus: It’s usually lower cost. The Washington Post wrote about Barry Bless and Jennifer Watson, who built a two-bedroom, one-bath, 1,150-square-foot mountain abode for $95,000. That’s about $83 per square foot. This is an ultra-modern home, with an open floor plan, hardwood flooring and floor-to-ceiling windows. Additional work needed on the home, like site prep and water/sewer hookup, was handled by the couple and their friends, which the article points out as an obvious cost-cutter.

“But Barry Bless and Jennifer Watson figure that even if contractors had done most of the work, their 1,150-square-foot, two-bedroom, one-bath mountain retreat would have come in at around $150,000. That works out to $130 a square foot, compared with the $200-to-$400-per-square-foot costs of many modern, architect-designed houses.”

Prefab housing has plenty of options. With full-length porches, decks, garages, fireplaces, basements, stone and brick exterior, these houses are virtually indistinguishable from their more traditional counterparts. However, prefab is really making a name for itself in modern housing design, something which would normally require elite architects and seemingly endless pockets. The boxy, airy, lofty looks are more popular around the U.S. and have also caught on in other countries like Sweden, where partnerships have been formed with Ikea modern furniture manufacturer.

OpenHouse NYC blog offers a video tour of a fabulous prefab home and interviews with real estate experts. Marcia Altman, a realtor in West Hampton, tells the blog that the only remaining stigma attached to prefab, or modular, housing is among “the uninformed.” Essentially, she says, this option helps home buyers get “a little more house for a little less money.” The prefab housing option may increase in cost as demand and respect grows, particularly when the limping housing market recovers and home prices soar once again. For homebuyers on a budget, it’s an option worth digging into.
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source: banks.com

What Does It Really Cost To Build Green?

Eco-friendly building design and construction is expected to make up at least 20 percent of all new construction by 2009. There has been extensive coverage of how much money homeowners can save on monthly utilities costs if they build an eco-friendly home. But how much is the one-time capital cost? The answer may surprise you.

According to a 2003 study of 33 LEED-certified office and school buildings in California, the average premium cost per project was less than two percent per square foot. The level of LEED certification greatly affects the premium construction cost per square foot, because higher levels involve more complex features like solar energy panels.

The California study, summarized on Buildings.com, breaks down the average premium cost per LEED certification level. The eight buildings at the lowest LEED-certification level had an average cost premium of less than 1 percent. The 18 silver buildings averaged a 2.1-percent cost premium, while the six gold buildings had an average premium of 1.8 percent. The single platinum building was at 6.5 percent.

“More and more buildings can be built at the LEED-certified level for little or no cost premium,” says Greg Kats, author of the California study. “You can easily get at least half-way to certified at a zero-cost premium.”

Kats warns homebuilders to beware of “glued-on green.” That is the decision to tack on eco-friendly options like low-emitting paint or recycled carpet in the middle of the project. Eco-friendly building works best when it is planned out well from the beginning, Kats says.

Homebuilders should also beware of “greenwash.” These are products put out by companies who don’t really practice green principles on a daily basis, but merely want to make a buck off a product whose eco-friendliness is questionable at best. These types of companies market green products to ride the current trend, but don’t necessarily have the earth as a top priority.

Ultimately, with a little research and planning, basic eco-friendly features like Low E windows, recycled carpet and extra insulation can be integrated into your new home with nominal, if any, extra cost. Why not, considering your helping the earth and saving money on a monthly basis in the long run.

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development, Internet programming,

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source: banks.com

What Is LEED Certification?

You may have heard a lot about LEED certification without understanding what it really means. LEED, or Leadership in Energy and Environmental Development, is essentially a rating system set up by the U.S. Green Building Council to gauge the “green”-ness of buildings. The LEED rating system has tiered levels, based on points accumulated for different building features. It offers basic certification, then the gradually higher silver, gold and platinum levels. Consumer Reports offers a more in-depth explanation on its web site:

“These levels correspond to the number of points earned in eight categories: Innovation and design, location and linkages to the larger community, sustainable sites, water conservation, energy efficiency, materials and resources, indoor air quality, and consumer education.”

LEED certification is highly sought after by commercial, government and industrial buildings. Basic LEED techniques, like low-emitting paint and Low E (energy-efficient) windows, are actually being implemented on a regular basis by many new homebuilders nowadays. This trend is part of a growing awareness that a few simple steps, sometimes at no extra construction cost, can go a long way toward helping the environment.

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Real Estate Designers offers totally innovative solutions for your software
development, Internet programming,

real estate web design and hosting needs. Our service includes domain name
registration and real estate web design. Real Estate Designers provides the
complete solution including design, application development and marketing.

"

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: banks.com