"There's a big demand for apartments, especially among young people who want flexibility," adds Olmstead. "There are also more amenities going into these projects, making them almost like resorts. And how can you get cheaper money than right now with interest rates of 3 to 4%?"
Olmstead adds that owners and developers of large condominium projects are requiring buyers to put more equity into the projects earlier.
"Some developments are requiring 10% at time of a reservation to purchase a unit, 20% at contract and 50% at time of the building topping out," he says. "This is better for everyone on the development and building side, making it harder for a buyer to walk away from a deal."
One aspect of particular interest to owners' budget sheets will be integrating solar energy systems into their projects, particularly as manufacturing costs for panels and controls decline and the cost of energy in Florida rises.
"It's starting to make sense for all kinds of projects—residential, commercial and industrial—as owners start seeing how they'll pay back over time," Olmstead says. "It's still an emerging market, but as the cost structure changes, more people will want to do it."
Strategic Choices
Yet even as the market accelerates, Tri-City is planning to remain selective about the project opportunities it pursues.
"It's important not to take on too much, and stay balanced with what we can do," McFarland says. "We're not going after everything."
This approach enables the firm to maintain a sufficient work force to be able to supply as many electricians as possible to meet a contractor's schedule—despite the recession-depleted pool of qualified tradespeople.
"Gone are the days when you had 10 electricians hungry for projects," says DPR's Lyons. "Now there might be only two. Central Florida is stable, but there could be problems if there's a boom and we have to compete with areas like Miami for labor."
While Tri-City has broadened its resource base to locate qualified personnel, including promoting apprenticeship schools and training for inexperienced workers, there are only so many people out there.
"We're already seeing the fringes of a problem, even with helpers," Olmstead says. "People went into another business during the recession or they left the state."
For now, at least, Tri-City's challenges appear to be good ones to have. And if they continue to manage their business like their projects, no issue is insurmountable.
"They don't come to you with a problem," says Simmons of his experiences with Tri-City. "They always bring a solution."