Interview: Ken Stiles, CEO & Board Director, Stiles Corporation

Ken Stiles

CEO & Board Director Stiles Corporation

How did the company adapt as it moved through the pandemic?

It was quite the challenge in the beginning but I am extremely proud that we were able to get through that. We had been working on 12 to 15 projects prior to COVID throughout South Florida, the Carolinas and Tennessee. We’ve had the ability to stay on track when equity really dried up for about three months and cities were shutting down and inspections and city permitting o cers were not available. Fighting through all of those challenges on the construction and development sides, coming out of it and still having a great pipeline moving forward is something to be proud of. That’s something that’s going to keep us moving forward for the next several years.

Have you seen a shift in where foreign investment coming to South Florida is landing?

We are still seeing some foreign investment. Prior to COVID you were seeing a shift from Miami toward here. But I think that was about pricing. When you look at Fort Lauderdale Beach and compare it with condos in Miami Beach and Aventura that were selling for $2,000 a foot, and you look at some of the stu we are finishing around here, it was probably $1,000 cheaper than you could get in Miami. On the actual ownership side, we are not seeing quite as much. The amount of South American investment in the past two years has definitely dwindled but you are seeing that uptick from the Northeast, New York and New Jersey. So, you are still seeing investment but there’s a larger shift to domestic investment coming from the Northeast.

How have changing habits by the younger generations affected real estate trends?

On the technology side, what we’ve been doing for the millennials in our buildings is more of a lifestyle element. We haven’t done a lot of industrial in a few years, but there has been a shift in retail lately that points to the possibility for additional last point-of-sale operational hubs.

Housing developers in Fort Lauderdale are looking at ways to develop more weather-resistant housing options

( ) While operating in such an atypical and fastchanging environment, communication, crisis management, re-strategizing both supply chain management and procurement practices have been key factors in maintaining delivery schedules and best containing price hikes. “It makes you schedule items a lot earlier than you might have scheduled before. You must do additional planning and have more communication with trade partners,” Taylor told Invest:. “We are staying closely connected with our resources, so we are continuously aware of their inventory and any potential supply interruptions. Frequently, we’re procuring products earlier than required and putting these products in storage to have it ready for the job. We also require additional cooperation from the owners and financial institutions, as they must finance this process of early procurement. It takes continual communication and planning to keep the projects on schedule.” he said.

Tight labor force availability was an industry challenge prior to the onset of the pandemic and will likely be a stumbling block for the industry in a recovering market. However, the essential nature of the industry, as validated by the Florida state legislature, could entice the workforce to explore the vast possibilities within the sector. “The labor pool was tight before COVID, so I don’t think the pandemic has exacerbated it. If anything, over the past year, people became more aware of how essential construction is to the economy. The real impact stems from the fact that a considerable portion of construction industry professionals are exiting and construction companies are having a hard time attracting young people to this industry,” Moss & Associates Chairman and CEO Bob Moss told Invest:. The construction industry sits at No.9 on the state of Florida’s fastest-growing industries list over the next eight years. The state projects the industry to grow by 10% by 2028, with heavy and civil engineering construction and specialty trade contractors positions driving a considerable portion of the statewide project growth, according to the Florida Department of Economic Opportunity.

Despite the traditional tight labor challenges, sentiment prevails that more and more young people will leverage the inherent career and job opportunities in the construction industry. “Those willing to work hard, study and improve their skills can make a substantial living as a high-quality craftsman and craft supervisor. The opportunities are really good. It’s also becoming an increasingly visible subject as more schools are encouraging it,” Moss said. “We interface with several organizations that bring out students and

Alex Hernandez

President – Hernandez Construction

We have been very fortunate to have been a key player in the industrial market. Even prior to COVID, this sector had been very active with the growth of e-commerce and the changes in demand regarding how we receive products. COVID has done nothing but accelerate that. Older generations have learned about e-commerce overnight. Another result is that traditional brick and mortar businesses have had to convert to e-commerce sales. Our industrial products are very adaptable and aesthetically pleasing and can incorporate elements of class-A o ce space, showrooms, and other applications in addition to traditional warehousing, manufacturing and distribution.

Fort Lauderdale is one of the primary hubs for the Brightline commuter train that will eventually run from Miami to Orlando. introduce them to the various traits of the industry. We make a point of being proactive in that effort and recruit them. We are also highly active within Florida International University’s School of Engineering with the Moss Department of Construction, Infrastructure and Sustainability. Several students work their way through that program, many of whom work for us. We sponsor quite a few of them to help them get their degrees,” he said.

Commercial As of 1Q21, there are more than 2.3 million square feet of combined commercial and industrial projects under construction in Broward County, according to Cushman & Wakefield. Industrial space construction is driving the majority of new construction in Broward County with more than 1.8 million square feet compared to 530,000 square feet of office space currently going up in the county. Shutdowns and shelter-in-place measures exponentially accelerated demand for e-commerce solutions, which has greatly driven demand for this asset class since the onset of the pandemic. Three million square feet of industrial space was delivered in the past year, JLL reported in its Q1 2021 Broward Industrial Market report. Demand for warehouses over 100,000 square feet has seen the biggest jump, a demand that is expected to continue to grow throughout 2021, JLL noted.

Broward County is also sponsoring several construction projects slated to help serve the needs of residents and businesses. Among these projects are a joint government center campus, several new courthouse buildings and an expansion of the Broward County Convention Center

Ryan Romanchuk

Business Unit Leader – DPR Construction

COVID has added another reason why the construction industry needs to and will continue to evolve toward prefabrication. It allows fewer workers to be on-site, less congestion, an e cient manufacturing process and more predictability in our supply chain. Prefabrication doesn’t come without its challenges, which is why the industry is slower to adopt. Every project is unique, teams and partners typically change project to project so it’s di cult to scale excellence. We believe it’s a mindset shift. Those that can adapt, stay cost-competitive and become even more e cient will be in a much better position as the industry evolves and moves ever forward.