New York Construction Continues to Soar
Construction starts in New York and New Jersey continued to climb this past year, with new projects reaching a value of $11.5 billion in 2015’s hot market—surpassing the $10-billion mark for the third year in a row.
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A New York Building Congress analysis of construction data from Dodge Data & Analytics echoes that trend; the report shows spending last year reached $40.9 billion, a 53% increase from $26.7 billion in 2014 and more than double the $19.9 billion spent in 2013.
Office building One Manhattan West, developed by Brookfield Financial Properties and designed by Skidmore, Owings and Merrill, leads the top projects list with a value of more than $1 billion. Residential buildings, however, had the strongest showing overall. According to the New York Building Congress report, residential starts saw an increase of 62% in 2015 to $19.5 billion, up from 2014’s $12.1 billion
The Related Cos. and Oxford Properties’ 72-story apartment building 15 Hudson Yards is valued at $575 million. Building 3 of Riverside Center, which stands at 400 W. 61st St., is also valued at $575 million. The 111 Murray Street project, developed by Witkoff Group, Fisher Brothers and New Valley, also broke ground this year; it is valued at $500 million. Plaza Construction is the contractor for the project
“Perhaps never before in New York City has so much new housing been in the pipeline at one time,” says Richard T. Anderson, president of the New York Building Congress, who will retire from the group at the end of 2016 after 22 years.
Outside of Manhattan, Mack Real Estate Group/Palin Enterprises’ 10 Huron Street, a $385-million, 39-story apartment building in Greenpoint, Brooklyn, broke ground last year. In Queens, Rockrose’s $350-million Eagle Lofts will stand 54 stories. In Jersey City, Lefrak Organization’s Ellipse Tower will include 376 residential units and is valued at $169 million.
Among nonresidential buildings, construction starts reached $18 billion, according to the Building Congress, up 65% from last year’s $10.9 billion.
Two large nonresidential projects broke ground on Manhattan’s Upper East Side this year: the $700-million Memorial Sloan Kettering Cancer Center and the $285-million Rockefeller University river campus, both of which are being built by Turner Construction.
Farther south in the borough, the $200-million South Street Seaport Pier 17 retail center, owned by the Dallas-based Howard Hughes Corp., and designed by SHoP Architects, was another top start.
While residential and nonresidential spending both rose in the past year, government spending dropped. The Building Congress reports that public works spending totaled $3.4 billion in 2015, down from $3.8 billion a year earlier.
Top starts in the public sector include the $263-million Belt Shore Parkway Mill Basin bridge replacement project in Brooklyn—owned by the New York City Dept. of Transportation and built by joint venture Halmar International/Mill Basin Bridge Construction—as well as the MTA’s $405-million Grand Central Terminal Concourse, being built by GCT Constructors Joint Venture (Schiavone/Picone).
“New York City and the construction industry are benefiting greatly right now from the private sector’s desire to invest in real estate across the five boroughs,” Anderson says. “Our main concern is that government investment in public works is not keeping pace despite the increasing demands inherent with all this economic growth.”