Tennessee Report

Residential declines offset by gains in other markets

By Candy McCampbell

Commercial, industrial and infrastructure construction is adding jobs in Tennessee this year, despite a big falloff in residential building.

From the Tri-Cities to Memphis, the outlook for commercial construction is that 2008 will be at least even with 2007, if not surpass it.

"We've got good backlogs and our competitors have good backlogs," says David Dando, president of MCDR Inc. in Memphis.

"Retail and commercial are still continuing," despite the residential building slowdown, he says. Office building has slowed.

Economist Matt Murray, associate director of the Center for Business and Economic Research at the University of Tennessee-Knoxville, calls the situation a "rather interesting puzzle."

"The construction sector continues to outpace growth in all other sectors," he says.

He forecasts around 2.5% growth in construction employment this year over 2007, a "significant stepdown" from the 5.9% gain posted last year, he says. But it is more than the less than 1% gain for non-farm jobs overall.

Still, the growth is positive and is the result of continued strong levels of commercial, industrial and other non-residential construction, he says.

However, he is concerned about an industry downturn if there is not a turnaround in building by the third or fourth quarter this year. "There is no other engine of support for the economy," he says.

Tommy Burleson, president of Burleson Construction Co. Inc. in Johnson City, Tenn., says the continued strength is coming from projects like hospital expansions in Johnson City and Kingsport, new buildings at East Tennessee State University and retail for the growing area.

His outlook: 2008 will be even with 2007 with any slowdown late in the year.

John Lawhon, director of safety and field operations for Blaine Construction in Knoxville, says, "We're covered up," mainly with institutional work.

In addition to the big Interstate 40 project, Knoxville activity includes a new HGTV building, continued renovations at Neyland Stadium, a new computer sciences building at UT-K and more retail construction at Turkey Creek.

Coming up is the $150 million Dumplin Creek, a 1.2 million-sq-ft retail/entertainment development at the Interstate 40/Sevierville-Gatlinburg exit.

"I don't know where this turndown is, but it's not here. All you've go to do in Nashville is look at the skyline," says Bill Young, president of the Tennessee Associated General Contractors.

The cranes rising along the Nashville skyline are for both commercial and residential high-rises. Similar cranes are also showing up in the Franklin and Murfreesboro areas.

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Mike Carpenter, president of the Associated Builders and Contractors West Tennessee chapter, also expects 2008 to be even with 2007.

A big contributor is Methodist Le Bonheur Hospital's start on a $327 million replacement down and a $124 million expansion at its Germantown location, he says.

Tennessee's road builders will have a relatively flat year, says Kent Starwalt, executive vice president of the Tennessee Road Builders Association.

He expects the Tennessee Department of Transportation to let about $600 million in highway contracts this year.

Blue Cross/Blue Shield of Tennessee Headquarters, Chattanooga

The data center serving this 1 million-sq-ft, five-building office complex will be really cool.

Skanska USA of Atlanta, EMJ Corp. of Chattanooga, Tenn., and H.J. Russell & Co. of Atlanta, Ga., are general contractors for the $299 million project.

A 4-ft underfloor space in the data center will house both the wiring for all the computer processors and a "CRAC" system, or chilled water units with fans for air distribution.

All other office areas will have a 1-ft, 2-in underfloor space that houses electrical and data wiring and heating and cooling, thanks to rooftop units that feed the ductwork there. Thermostats control other underfloor units and heat or continue moving cool air as needed, says Jessica Murray, Skanska director of field communications.

The 4,000 employees will have a 1.5 million-sq-ft parking garage, built in seven terraced levels on the 47-acre hillside.

Project officials plan to earn Silver LEED certification.

Started in October 2006, it is on schedule for completion in spring 2009.

Pinnacle at Symphony Place, Nashville

Nashville's first Silver LEED certified downtown office building is the 28-story, 530,000-sq-ft tower that will be headquarters for Pinnacle Financial Partners and the Bass Berry & Sims law firm.

An adjoining 475,000-sq-ft parking garage will have space for 975 vehicles on 10 levels, with 28,000 sq ft of roof space for vegetation irrigated by rain runoff.

Some 60,000 cu yds of concrete and 6,500 tons of rebar will go into the cast-in-place tower, says Russell Buster, project manager for Brasfield & Gorrie on this $102.5 million job.

The foundation is on spread footings because the building is virtually sitting on solid rock.

About 95,000 cu yds of rock and dirt were removed from the site for the three below-ground levels under the office tower and four below the parking garage, he says.

A major challenge is the downtown location and lack of laydown area, so all deliveries are as-needed and slabs are poured at night.

Construction started in June; completion is December 2009.

North Ridge Nike Footwear Distribution Facility, Memphis

Nike Inc. will consolidate two distribution centers when the 1.1 million-sq-ft, $107 million distribution center opens in August.

Built with tilt-up walls, it is 1,287 ft. long on one side, has 73 loading doors and 39-ft clear space inside to hold bulk racking.

With a 25-acre footprint, it has 25,000 cu yds of concrete, or enough to fill 20 Olympic-size pools, says Jim Petsche, Nike director of corporate facilities. The Haskell Co. of Jacksonville, Fla., is the general contractor

Nike is seeking Silver LEED certification on the center.

The roof is metal deck with steel joists and covered in white reflective TPO (thermoplastic polyolefin) membrane and both the roof and walls have extra insulation, he says.

Solar-tracking skylights in the building have mirrors to track the sun, providing light for more hours each day. A parabolic-like antenna will capture sunlight, feeding it to fiber optic cables that will light the building lobby.

Ponds are being built for storm water retention and treatment and for roof water for irrigation.

Fort Sanders Sevier Medical Center, Sevierville

This $110 million hospital job, started in November, is across the street from the facility it will replace at completion in November 2009.

Late this year will see completion of a medical office building, says Marty Gibbs, project manager for Rentenbach Constructors of Knoxville.

The project also includes the 30,000-sq-ft Dolly Parton Center for Women's Services and a 17,000-sq-ft branch of the Thompson Cancer Survival Center.

The medical and women's buildings will be connected to the 200,000-sq-ft hospital with covered corridors. The 17,000-sq-ft cancer center stands alone.

The hospital will have 79 patient rooms, a larger emergency department, a larger labor/delivery/post-partum area and a step-down unit.

The main floor, covering 130,000 sq ft, will house ER, the ORs, radiology, pharmacy and food service. The second and third floors, at about 40,000 sq ft each, will have labor and delivery, intensive care and step-down units and patient rooms.

It is a steel frame building with composite floor slabs. The exterior will be brick and natural river stone.

Kingsport Pavilion Retail Shopping Center, Kingsport

A wetlands area on the 78-acre site was a challenge for Brasfield & Gorrie of Birmingham as it started building this 425,000-sq-ft shopping center.

It needed additional planting in the wetland and placement of logs, trees and rocks in the river bed that is active after rain, says Robert Tysinger, project manager.

The $75 million center was completed in January, 14 months after work started at the old Mason Dixon trucking terminal site.

The other challenge was getting stores on line and keeping work flow going to meet other opening dates, he says.

The Target, Old Navy, Shoe Carnival and Kohl's opened in November while others were still under construction.

Dick's Sporting Goods, delayed by the wetlands permit, was finished and ready for stock in 16 weeks, he says.
The buildings are load-bearing masonry and steel with front exteriors of split-face block and EIFS.

Part of the back of the site had to be graded down and part of the front had to be filled in for the 1,907-space parking area.

Sumner Regional Patient Tower, Gallatin

This 200,000-sq-ft hospital addition is designed and built so that another tower can be added behind it to accommodate future growth, says Allen Guillory, project manager for Birmingham-based Robins & Morton Group.

The $81 million addition to the 48-year-old facility stands 7 stories and includes 72 patient rooms, 18 critical care rooms, emergency department, medical imaging, six operating rooms, new main entrance, lobby and registration area.

The job also includes a new central energy plant, which also will be expandable to handle additional hospital growth.

The new tower is tied into the main facility only at three areas on the second floor, so it is virtually independent of the existing building, he says.

With a 40,000-sq-ft footprint, the new building foundation sits on about 80 caissons.

The building is structural steel with concrete slab floors and an exterior of brick, EIFS and glass.

About 1,400 tons of steel, 150 tons of rebar and about 6,000 cu yds of concrete will be used.

Started in November 2006, it will be completed in March 2009.

Memphis International Airport Traffic Control Tower, Memphis

This 336-ft tower stands 136 ft taller than its predecessor where air traffic controllers handle traffic for the Memphis International Airport and within a 40-mi radius.

Flintco Inc. of Memphis is the general contractor for the $52.2 million job. It also includes a 20,000-sq-ft base office building and a 3,000-sq-ft support building for backup generators, says Tony Caldwell, project manager.

They started in January and will finish in June 2010, when the existing tower will be disassembled and removed since it is so close to the new tower.

The tower - essentially a globe on a pole - is built of poured-in-place concrete, precast concrete and structural steel. The round shape improves wind resistance.

It sits on a 56- by 56-ft concrete foundation.

The controllers will work in the 850-sq-ft cab, a 16-sided polygon surrounded with 5-ft wide panes of glass placed in front and above them at 90-degree angles.

Flintco will provide heat, air and power to the tower and additional conduits for another FAA contractor to install computers.