Office Construction in New York Hits 25-Year High
The place called "The Big Apple" is also a place of big buildings and big lifestyles. It is also currently a place of big construction. While the Northeast at large hasn't enjoyed the construction gains that other parts of the country have, New York City is enjoying its biggest construction boom in twenty five years. The reasons as to why this occurring now are a combination of new hiring, continuing projects, and low interest rates.
Projects that are currently under way and that will be completed in the next couple of years include work in the city's Midtown West neighborhood. This area includes mixed-use Hudson Yards, which features a combination of shopping, offices, and residences.
More residences are also in the process of being constructed in downtown Manhattan, an area that seems poised to add some badly needed office space as well. And the reborn World Trade Center added several million feet of office space this year.
The late 1960s-early 1970s still hold the record for New York City's heaviest construction work, but 2015-2016 will add almost 10,000,000 feet of new office space to the metropolis for a total of 19 new buildings. Some areas outside of the immediate Manhattan area are showing construction surges as well. Long Island City and downtown Brooklyn are both seeing upticks in residential projects due to those areas' reputations as desirable places to live. Those and other outlying areas have room for office expansion. Such office expansion there is thought to be unlikely though, as companies are drawn to Manhattan addresses.
The construction boom is not only confined to brand spanking new buildings. Improvements in the economy have led landlords to make repairs and renovations to existing buildings. These upgrades are expected to add $1.2 billion to construction firms' coffers.
Analysts are pleased at all this new building growth. But they point out that companies are rethinking office buildings in general. New buildings are smaller and more open in their interiors than in the past. This means that firms will complete these projects more quickly and will need to take on more in order to see a profit.
Will the boom slow down anytime soon? Many office projects will have ended by 2018, but between the demand for new residences, and higher learning institution expansion, construction crews within the Big Apple should be a familiar sight for some time to come.