We've watched the shares of homebuilders unravel for more than a year, but what if I were to tell you there's a side to the construction business that's still going gangbusters? Well there is, evidently, and my source, a subscriber whose company achieved 25% growth in the last fiscal year, says he's intent on extracting all of the lucre he can while the good times last. Here's the note I received yesterday from John D., whose against-the-grain observations have been featured here before: 'I know you are blown away by my comments about construction,' he writes. 'The latest real estate mania in Southern California is a commercial/industrial condo craze. We've been involved in over a million square feet of these type units over the past year-plus, and we also have about another 500,000 square feet under contract. $360 per Foot! 'An industrial/ commercial condo is a 2,500-10,000 square foot shell meant for 'end-users.' The deal works like this: A business will purchase a unit, do its own interior improvements, move in and make mortgage payments just like a homeowner. You pay association dues, etc. These 'shells' sell for between $130 to $300 per foot! Plus, there are the tenant improvements, which can run from $40-$60 per foot! Quite a price tag for a 'condo,' eh? No doubt, there's going to be a huge inventory of these units with no buyers somewhere down the road. But as long as someone is going to pay me to build them I'll keep cashing the checks. 'Another sector that is very strong in Southern California is multi-family housing. I have a good friend who owns several apartment buildings with, effectively, zero vacancy rates. There is a huge shortage of rental units. 'Doing What I Know' 'I love the construction business -- I know I
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