The Next Wave of Condominiums and Other Updates

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There is one constant at Xpera Group: change. Fortunately for us, that change is closely tied to growth.

In this post, we'll try to recap some of the latest updates at Xpera, as well as provide some insight into the market and how it may impact your business.

The Next Wave of Condominiums

Alan_Nevinby Alan Nevin
Team Lead, Market Research & Forensic Services

The last wave of condominium production proved to be a bonanza for those of us in the construction defect litigation business. Most of that construction (or conversions) occurred in the 2002-2006 timeframe. As lawsuits typically occur five to eight years after construction, the late-2000s were ripe for litigation.

In San Diego, there were 57 condominium projects constructed or converted in downtown between 2000-2007. Of those, 72% were involved in litigation. (Interestingly, Xpera Group was retained in 78% of the cases).

New construction of condominiums and conversions has been largely dormant since 2007 and there appears to be little appetite by developers for jumping back in the business (at least in California). Even the Vancouver developers are being shy this time around.

To continue reading this article, download the Spring 2014 issue of X-Press, our quarterly newsletter.

Mr. Nevin can be reached by phone at (858) 436-7770

From Litigating the Boom to Litigating the Bust

Bumgardner-Management-Photo-2-150x150by Ted Bumbardner
President, Xpera Group

Back in 2011, we discovered an interesting correlation between residential permits issued in California and defects lawsuits filed six years later. Between 1995 and 2006, we saw the number of residential building permits issued in California double in volume. According to Westlaw, the number of construction defect cases filed in California doubled from 2000 to 2011, similar to the growth that occurred in residential construction, just shifted five years

The residential building boom in California ended in 2005, with about 155,000 housing permits issued. By 2011, the permit volume had dropped 86% to about 22,000. It looked like a substantial decrease in defect suit filings was imminent.

Now, looking back at 2012 and 2013, we can see that in fact there has been a 26% drop in defect case filings in California.

We have now moved from litigating the boom to litigating the bust. Over the next few years, several factors will affect the number of homes ultimately ending up in defects litigation.

To continue reading this article, download the Spring 2014 issue of X-Press, our quarterly newsletter.

New Faces at Xpera Group

Please join us in welcoming these outstanding construction and real estate experts who have joined our growing team in recent months:

  • Terri Bumgardner – a recently retired land use and environmental planner with the City of San Diego development services department
  • Neal Singer – a financial, accounting and development consultant with a broad background in real estate investments, foreclosures, trusteeships and financial analysis
  • Rene Smith – a logistician and probability expert with a deep understanding of the mathematics of development and contractual agreements
  • Doug Paul – a seasoned civil engineer who founded and successfully built PDC, at one time San Diego’s largest engineering and planning firm
  • Brian L. Hill – a quality and sustainability expert passionate about improving the built environment, with over two decades of experience helping buildings and businesses achieve more from less

Much, Much More...

These are just some of the latest updates at Xpera. To stay informed, please consider subscribing to our newsletter for free.

If you'd like to read the latest copy of X-Press, our quarterly newsletter, you can download it below:

X-Press Spring 2014 Newsletter

X-Press Spring 2014 Edition

Topics: Economics, *, Alan Nevin, Neal Singer, Ted Bumgardner, Construction Consultant, Doug Paul, Litigation, Market Research, Terri Bumgardner, California, Condominiums, Brian Hill, Rene Smith


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