Hi All,
I'm giving a quick presentation for one of my undergrad classes regarding the opportunity for modular real estate construction. I'm specifically looking for information regarding financial incentives such as increased returns vs. traditional construction, as I am aware of benefits such as time, labor costs, reducing waste, etc. To be transparent, this is a topic that I find extremely interesting but do not know a ton about. Any information/opinions would be valuable to me. Bottom line, is modular construction worth it? If anyone has experience with modular construction and could shoot me a message it would be greatly appreciated.
it is but in the US it's really hard to find a modular supplier, because the ones that exist are busy right now focused on prefab single-family homes.
Google Skender Construction, they just launched a factory to build modular multifamily product
In Oakland by the Colosseum/Oracle Arena and next to BART (train) they are building a modular MF deal. I have an article somewhere. Supposedly it's 30% cheaper than stick built and goes up twice as fast.
In the PNW, labor shortage and high construction costs have led to a strong uptick in modular construction. CitizenM hotel in Seattle would be an interesting case study. My understanding is that the costs are not much lower but the timing is better which yields to better returns in an increasing rate environment.
I would recommend reaching out to developers and architects who specialize in the product such as Parkstone Properties and Guerdon.
We are doing a hospitality modular project in a market that is difficult to site build due to remote location. Modular is typically only cheaper than traditional construction in high construction cost markets due to demand or location. Construction duration is typically cut by 3-6 months also and quality control is superior than site build. Check out Guerdon Construction https://www.guerdonmodularbuildings.com/
The pitch to us is always "yes it'll cost more, but it'll finish 60%-70% faster so you can start cash flowing faster."
Very interested in this topic so appreciate the posting. Also aware of hospitality projects that are modular I believe in Philly area (can circle back if desired).
Look up SG Blocks as well. Not a new company (founded in 1993), but their corner of the market is shipping containers: https://www.sgblocks.com/
I think the biggest benefit over cost is reduced time of construction. Not sure if this will ever replace stick build but certainly an area of growing interest.
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