The Punch Report

August 2023

Neighborhood Goods Storefront
Los Angeles, CA

Servco Builders is excited to share one of our latest Design/Build projects for the G/FORE golf apparel Company in Los Angeles. Partnering with Ware Malcomb on the design portion, this build consisted of offices, photo studio and showroom to display their latest Golf Line. This included many high-end architectural elements such as fry reglet, wall base, and flush mount doors.

G/Fore is a global fashion brand based in Beverly Hills. Born in Los Angeles but bred with a global perspective, G/FORE was conceptualized with a passion for modern design combined with a love of golf. Distinguished by attention to detail, sophisticated ease, playful nature, youthful energy and sense of humor. G/FORE takes inspiration from art, architecture, modern design, and colorful narratives, all while disrupting the industry and respecting the sport and its rich traditions.

More on G/FORE:

“Thank you! I really appreciate the job you guys have done and continue to do. I’ve built many spaces and your professionalism is unmatched.”
Mossimo Giannulli, Founder – G/FORE
Neighborhood Goods Interior Counter
Neighborhood Goods Interior Counter
Neighborhood Goods Interior Counter

If you have a need for quality commercial construction at great value, please send bid requests to:

June 2023

Neighborhood Goods Storefront

Neighborhood Goods
Fashion Island, Newport Beach, CA

Servco Builders is pleased to announce the opening of Neighborhood Goods’ most recent retail location at Fashion Island in Newport beach adjacent to the koi pond.

Neighborhood Goods is a new type of department store, featuring an ever-changing landscape of thoughtful, exciting, and contemporary brands, stories, and events. More than that, Neighborhood Goods strives to be a place for community, bringing people together to shop, eat, discover, and learn across its growing number of stores throughout the country.

At approximately 10,000 SF, the department store features many great brands, an in-store café and live music on Fridays.

More on Neighborhood Goods:

Neighborhood Goods Interior Counter
Neighborhood Goods Interior Counter

A Note From The President

Competitiveness In The Construction Industry

The availability of financing plays a crucial role in the construction sector, as real estate developers rely on loans to fund their projects. Higher interest rates, stringent requirements, and increased scrutiny on construction loans have resulted in a decrease in the number of approved projects. This has led to a slowdown in construction activity as owners struggle to access the capital needed to initiate or complete projects. With a highly competitive market, construction companies are accepting lower profit margins in order to secure contracts and keep their operations running. However, reduced profit margins hamper their ability to withstand unexpected costs and market fluctuations. Additionally, we have seen some sectors of the construction industry experience lay-offs, especially in commercial construction due to lack of demand, multifamily in overbuilt markets and residential remodeling as availability of discretionary spending and access to cheap mortgage debt wain.

Overall, the lending constraints faced by the real estate and construction industry are impeding its growth and causing a slowdown in construction activity. As a result we have seen pricing adjustments; owners can expect to see a stabilization to a slight decrease in construction costs if they take a project out to bid now versus six months ago. Additionally, there should be increased interest and participation in bidding projects as well as availability and timely performance amongst the subtrades. The next twelve months might not be a bad time to build if you have the capital.

If you have a need for quality commercial construction at great value, please send bid requests to:

April 2023

Studio W Architects
Newport Beach, CA

Located at Newport Blvd & 32nd Street across from the Lido House hospitality and retail development, Studio W Architects has brought cutting edge office design to an A+, amenity rich Balboa Peninsula location. What I like most about this build is the super smooth sliding glass office fronts and excellent use of branding and colors in material selection. Our team is proud to be a part of their success.
Founded on the principles of serving the communities where we live, work and play, Studio W Architects was established as a design firm specializing in educational and public works architecture. Studio W Architects is a full-service architecture, interiors and planning firm with thriving public and private education, civic, commercial and retail markets throughout California.

A Note From The President

Higher Interest Rates vs Construction Pricing

At the close of Q1 2023, the construction industry is facing some potential challenges in the form of higher interest rates. Interest rates are a crucial factor in determining the cost of borrowing money for construction projects, and any increase in these rates will impact construction pricing. As interest rates rise, the cost of borrowing money also increases. This increase in financing costs can make it more expensive for suppliers and construction companies to access funds needed fill inventories and complete their projects. As a result, construction companies may need to adjust their pricing strategies to account for the higher cost of borrowing.

On the other side of the coin, higher interest rates have led to a slowdown in construction activity. As borrowing costs rise, construction projects may become less financially viable, leading to a decrease in demand for construction services. This decrease in demand can then impact construction pricing, with companies potentially lowering their prices to attract customers. In speaking with peers in the commercial construction industry we have definitely seen a slow-down in new projects (especially ground up development). Construction companies are tightening their margins and decreasing prices in order to keep projects coming in the door. That said the Owners/Developers may not realize a decrease in construction costs due to continued material price increases and higher credit rates which is offsetting price reduction offered by construction companies.


In conclusion, higher interest rates can potentially impact construction pricing in various ways. Construction companies may need to adjust their pricing strategies to account for the higher cost of borrowing, and there may also be a slowdown in construction activity due to decreased demand. It remains to be seen how the industry will adapt to these challenges in the coming months.

If you have a need for quality commercial construction at great value please send bid requests to:

Februrary 2023

Bristol & Birch, Newport Beach

Chosen by the Starbucks Corporation, Servco Builders is pleased to deliver Newport Beach’s latest coffee destination. Please stop by for a coffee at Bristol and Birch and enjoy the new modern design concept with bright and clean finishes complete with large dining area, outdoor seating and drive-through convenience.

PPG Industries
Los Angeles, CA

Servco recently built a complex, state-of-the-art aerospace manufacturing facility for PPG Industries in Los Angeles. Partnering with PPG on design/construction, Servco’s project staff answered the need for an expedited timeline in order to produce critically needed aerospace components for the US military. The build included aerospace manufacturing facilities such as clean rooms, bridge cranes, casting ovens, CNC machines, water jest and autoclave equipment.

A Note From The President


Is relief in sight for construction material price increases? As we head into a weakened economy due to interest rate hikes, housing and private sector construction starts are down but the government keeps spending on infrastructure projects.

January 2023 vs. January 2022 (YoY)

  • Total construction down 14%
  • Residential starts down 34%
  • Non-residential starts down 2%
  • Non-building starts (roads & infrastructure) up 10%

Last week I attended a construction conference and gained great insight into what companies are seeing across the country. Most civil and general contractors have noticed a decline or delay in multi-family and commercial construction projects but many of these contractors have large backlogs they are working through. Contractors focused on government projects are seeing great opportunities and remain optimistic for 2023. Labor shortages and material prices continue to erode contractor margins but to a lesser extent than last year.



January 2023

Fashion Island (Newport Beach)
2ND & PCH (Long Beach)
Studio City (Los Angeles)

Servco recently partnered with Brixton, an emerging clothing brand, and Starch Creative to complete the build out of new brick and mortar stores at three premier Southern California retail locations.

Check out what this unique local brand has to offer: Brixton

National Auto Loan Network
Flight at Tustin, CA

Servco was selected by the Lincoln Property Company and National Auto Loan Network (NALN) to build a revolutionary first-generation office space for NALN, elevating their corporate image with cutting edge creative office space at the new Flight office campus in Tustin.

A Note From The President


We are excited to share these projects with you. Servco takes great pride in building our Client’s vision. It is a blessing for us to be a part of their story.

Market trends: Lumber is back to pre-pandemic pricing! However other materials such as drywall, insulation and acoustical ceilings continue to show recent price increases. Overall construction pricing has leveled off and stabilized from the massive price hikes of the past few years.

 Wishing you a prosperous 2023!

If you have a need for quality commercial construction at great value please send bid requests to:

We’re ready to serve

Phone: 949-955-2300

Fax: 949-955-2301


CA B937164

AZ ROC326819

NV 20191555542