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A new report from Marsh Inc., an international insurance broker and risk advisor, finds many insurance companies remaining on the sidelines as they work to determine the extent and types of exposures that might evolve from green building projects. As the number of these projects grows throughout the United States, many leading commercial property and casualty insurers have been reluctant to provide the specialized coverages or program enhancements this construction may require or warrant. According to the Marsh report, the property and design professional liability insurance markets have been the first to develop enhanced coverages or provide specific risk management…

A report released this afternoon by the Port Authority of New York and New Jersey said that the World Trade Center rebuilding project in Lower Manhattan would take substantially longer and cost substantially more to build than estimates have indicated. In a letter to Governor David Paterson of New York, who requested the report, Chris Ward, executive director of the Port Authority, wrote that the schedule and cost estimates of the rebuilding effort that have been communicated to the public are not realistic. While the report itself did not revise the schedule or the budget, a story in this morning’s…

The crane collapse that killed one worker and injured two others this morning on Manhattan’s Upper East Side again throws a spotlight on construction safety issues. Today’s fatal accident occurred at a residential tower under construction on East 91st Street in Manhattan’s Upper East Side district. As it fell, the crane severely damaged a residential building across the street. At a hastily called press conference broadcast by local radio station WINS and other outlets, Mayor Michael Bloomberg (pictured) said, “We don’t know why it snapped off, but we will certainly do an investigation.” The mayor, who was surrounded by a…

By Eugene Gilligan Steve Pumper is hoping to witness a large, market-changing deal. “I’m looking for a major player to execute a major transaction,” said the executive managing director of investment services for Transwestern. Such a deal could signal that property values have hit bottom and that the buyer is betting that values are trending back upward. For Pumper, that could bring much-needed clarity to the investment sales market. A worsening economy, a derailed CMBS market and more-conservative lending have all contributed to an investment sales environment that will likely see a steep falloff from 2007’s $435 billion worth of…

Though plans by Investment Corp. of Dubai to buy Spanish real estate giant Inmobiliaria Colonial SA have been given the deep-six, there are apparently other bidders eager to get a piece of Madrid-based Colonial or its assets. Colonial CEO Mariano Miguel, speaking on Bloomberg Television earlier today, alluded to messages “on my Blackberry” about interested investors, but did not name them. Thompson Financial, citing reports in the Spanish publication El Economista, said this morning that Fomento de Construcciones y Contratas SA (FCC) had devised a plan under which a consortium of six investors would each buy the 15 percent stake…

Developers and building owners are continually challenged by cost overruns on their projects due to continuing and deep-seated problems in the U.S. construction industry, according to construction attorney Barry LePatner. LePatner, speaking in Manhattan at a forum recently, which was sponsored by the Real Estate Board of New York, called the $1.2 trillion construction industry “dysfunctional.” He said problems are caused by the fragmented nature of the industry that lacks a firm with a truly national presence. Construction firms typically are plagued by limited cash flow, minimal capitalization, and reluctance on the part of the industry to accept risk. Construction…

By Eugene Gilligan Cushman & Wakefield Inc.’s 90th year was particularly busy. The firm received a major capital investment from a new majority stakeholder, expanded globally both organically and through acquisitions and purchased a majority stake in real estate investment banking firm Sonnenblick-Goldman L.L.C. Not bad for a nonagenarian. The new investor provided both heightened means and added impetus to a company already focused on continued growth. IFIL Group, the investment entity for Italy’s powerful Agnelli family, closed in April 2007 on the purchase of The Rockefeller Group’s 71.5 percent stake in Cushman & Wakefield, paying a total cash consideration…

Even experts continue to disagree about the depth of the American economy’s troubles and its impact on commercial real estate. That was clear during the lively opening panel discussion this morning at CPN’s annual Philadelphia Property Opportunities conference. “I think we’re facing the abyss, and it’s principally driven by the home building sector,” Chris Terlizzi, executive vice president for Citizens Bank, told about 300 real estate professionals at the Sheraton Philadelphia City Center. “We have a lot of uncertainty right now, and it’s anybody’s guess as to how it’s going to play out.” The current situation is worse than the…

Construction is set to begin on two new towers at the World Trade Center site in Lower Manhattan as the Port Authority, which owns the site, nears completion of basement excavations for the buildings, known as Towers 3 and 4. The Port Authority said it would complete the excavation of Tower 4 by the middle of this month, with basement work on Tower 3 (pictured) finishing up two to four weeks after that. The announcement paves the way for Silverstein Properties, the developer of the actual towers themselves, to ramp up procurement and preconstruction work in anticipation of beginning work…