Six Ways Cold Formed Steel Helps Multifamily Investors Stay Profitable
If you want to invest in multifamily housing units, selecting the right materials is easily one of the most important decisions you’ll ever encounter. There are a number of ways cold-formed steel helps multifamily investors. Indeed, while cold-formed steel framing may not be the absolute cheapest option on the market, it is arguably the most economical solution for multifamily construction.
For various reasons, multifamily housing units are an incredibly popular solution in the modern market for new investors and established construction industry organizations. Multi-family projects are easier to finance, offer great versatility, are scalable, and provide steady cash flow even when some of the units are unoccupied.
Here are six reasons why cold formed steel framing is the ultimate solution for multifamily construction projects.
1. Quicker installations with less on-site labor
When analyzing the costs of multifamily building projects, the material costs form just one of several key factors. Cold-formed steel framing is a relatively affordable material from a construction perspective, but it’s in the labor costs where you will generate huge savings.
On average, a small crew of eight workers can erect 6,500 square feet of cold-formed steel structures per week. Quicker installation and cheaper construction schedules help investors save thousands of dollars during this part of the process while simultaneously opening the door to revenue opportunities far sooner.
The importance of having an efficient construction schedule cannot be emphasized enough. For that reason, focusing on cold-formed steel framing is one of the smartest decisions any inventor could make for their multi-family construction project.
2. Design efficiency meets predictability
CFS framing is the perfect solution for multi-family housing units between four and 12 stories high. Furthermore, cold-formed steel framing has been used in construction projects since the mid-19th century, which makes cold-formed steel framing a suitable choice for real-life projects. No investor wants to use untried, untested construction materials in their building projects.
The nature of cold-formed steel structures means that every joist can be manufactured to the desired strength and tolerance levels. Meanwhile, the predictability and accurate manufacturing of cold-formed steel make it perfect for efficient designs.
3. Cold formed steel structures offer great sustainability
Time savings and quicker installations are great. Owners of multi-family housing units must also ensure they meet the latest eco-friendly building standards per the EPA guidelines. Otherwise, you could encounter fines and penalties that quickly counteract any profits from rental revenue or unit sales.
Cold-formed steel framing is ideal for multi-family construction because it is made from up to 75% recyclable steel materials. Moreover, the durability of the material has a positive influence on the long-term environmental friendliness of the multi-family construction project.
It should also be noted that modern design and manufacturing processes reduce carbon emissions, in part because on-site labor and equipment requirements are minimalized.
4. Cold formed steel frames use lightweight and prefab materials
It’s true that some other building materials, like wood framing, may offer slightly lower material costs. However, prefabricated cold formed steel framing is manufactured off-site. This alone reduces your costs due to reduced equipment needs and waste cleanup. Moreover, it takes just 10% of the man hours to manufacture steel frames that it did 40 years ago, which makes it far more affordable too.
Cold formed steel framing is additionally 50% lighter than traditional concrete while maintaining the same properties concerning structural load-bearing capabilities. While joists are heavier than wood, they do not place the same demands on beams and other features.
The lightweight structures will save money on transportation costs and fuel. When combined with the benefits of prefab manufacturing, it becomes the most convenient and economical solution for large constructions like multi-family apartments.
5. Low maintenance and low insurance
Affordable units shouldn’t only offer a great solution during the construction phases. Investors in multi-family construction must also keep an eye on the long-term features, regardless of whether they wish to sell the development or hold onto the rental units.
Cold formed steel framing will last for decades and is naturally resistant to corrosion, fire and mold. Likewise, it is non-combustible, resistant to extreme environmental factors, as well as natural nuisances such as warping and termites. It can be considered one of the most resilient building materials available and the perfect solution for multi-family construction projects where maintenance could cost you a fortune in lost revenue.
Over the course of 10 years, lower insurance rates can save multi-family investors an average of more than $4 per square foot. When working with thousands of square feet, this is another significant saving to boost long-term profitability.
6. Happier occupants generate more revenue
Multi-family investors who wish to unlock the full economic benefits of their construction projects must always look to deliver the best results to their future tenants or homebuyers. It is one of the most compelling reasons to integrate cold formed steel framing into their future building developments.
Also, the acoustic ratings of multi-family properties using cold formed steel structures are over 30% better than wood construction and 60% better than concrete framing. When sharing a building with multiple families, this is a crucial feature for all tenants.
When combined with the right floor system and wall materials, cold formed steel framing can also support great insulation and ventilation for comfort throughout the year. To learn more about the benefits of cold formed steel framing, contact our friendly experts, at All Steel Mid Rise today.
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