Jason Albu, Co-Chairman of Albu & Associates, Inc., sat down with Invest: to discuss the state of the design/build sector in Greater Orlando, projections for what 2025 could look like for development if interest rates go down, the industries seeing the most activity, navigating a more litigious environment, and more.
What milestones and achievements defined 2023 for Albu & Associates in Greater Orlando?
In the past year, our greatest achievements have included working with large national retailers to renovate stores throughout our area. With that have come projects that include renovations of schools and office spaces for existing and new tenants to the Central Florida market, as well as a general growth of retailers and expanding the office footprint for new companies.
How does the company distinguish itself from competitors in the market?
Some of our differentiators include our status as a Minority Business Enterprise. My family is originally from Brazil, and our company’s diversity is a strength. Additionally, our ability to build strong relationships sets us apart. We have been in Central Florida since 2001, and over that time, we have built relationships with many local and national business leaders and politicians. Those relationships have significantly impacted the growth of our company.
What is the viability of the coworking model in this new era of work?
Albu & Associates, Inc. uses coworking space for out-of-town work and off-site leadership meetings and events. Overall, though, our company was built on working in our main offices, which are located in Central Florida and Pompano Beach. Our employees are expected to work in the office outside of emergencies or extenuating circumstances.
How has Albu & Associates, Inc. adapted to the continuing demand for mixed-use multifamily projects?
From time to time, we get involved in projects that use retail, office, and living space. Typically, these projects bring specialists to build certain portions of the site. One may build the shell, and then we may get brought in later to build retail or office space. We do not deal in any multifamily or living sites, but we regularly team up with other contractors who do.
What are you tracking in today’s legislative and regulatory environment?
Some of the issues we run into in construction include being too litigious. Latent defect laws are considered when building a project, and it is common for attorneys to come after contractors several years after the project has been completed for a maintenance issue that does not warrant legal action. We also encounter issues where some building departments require the contractors to send them a copy of their contract. Once that contract is sent, the construction contract becomes public property, allowing competitors and the public to look at your contracts. This can provide a disadvantage in future pursuits. The government is stepping in beyond what it needs to do, and we are working to ensure a balance in control and safeguards without overreaching.
What opportunities or challenges exist when operating in today’s markets?
Interest rates are a huge issue for some of our more speculative developers building shopping centers and office buildings without fully leasing everything out. With interest rates as high as they are, it is hard to pencil rents in where they need to be. It would be encouraging if they were to go down by the end of 2024 with the influx of new development that would take place around the same time. Overall, we should see a decently-sized boom for 2025. There is an effect on the volume of work for 2024, though.
How is Albu & Associates, Inc. taking steps toward more sustainable practices?
Sustainability is huge in construction. The way building codes are being written to encourage contractors to recycle more, reuse materials, and use more energy-efficient insulation, air conditioning units, and lighting is almost being forced onto the contractor and owner. Even if you are not big on looking into these new technologies, you have to do so anyway. Construction is becoming more and more energy efficient and resilient in using materials that are recycled.
How would you describe Greater Orlando’s current design-build sector?
Design-build is one of many methods for developing a construction project. It is becoming increasingly widely used because people are finding savings in time and resources by tasking one team to do the whole project. It also eliminates the adversarial relationship that can exist by seeing one another as members of the same team. Overall, its use is increasing in Central Florida.
What are your top priorities for Albu & Associates, Inc. in the next two to three years?
2025 will be gangbusters for Central Florida and the rest of the state. Our top priorities will be to increase our penetration in the retail market and with healthcare companies. This will include providing proposals for new healthcare spaces and office products. People want to make their spaces more attractive to their employees, so they are excited to return to work. We are also seeing more bank construction activity, both at the corporate and branch levels.
