A study released by the New York Building Congress shows that construction costs in Manhattan have risen 5% in each of the last two years, GlobeSt.com reports.
This number is higher than the average construction cost hikes nationwide, which were 2.5% in 2013 and 3% in 2014.
Hospital construction is the most expensive, at $800-$950 per sf. Five-star hotels follow at $700-$800 per sf, and university buildings at $600-$850 per sf.
City construction company representatives are concerned that costs could continue to rise despite the recent plunge in oil prices, because essential trades such as curtain wall and cast-in-place concrete have been reported to be running out of capacity.
President of the New York Building Congress Richard T. Anderson says that the annual 5% increase rate should be a cause for concern to the city, even though a considerable portion of the recent increase in costs is the product of forces beyond the city's control. He called for the industry and government to look for ways to reduce the cost of construction and eliminate regulations and red tape, according to GlobeSt.com.
Related Stories
| Sep 22, 2014
Biloxi’s new Maritime and Seafood Industry Museum is like a ship in a bottle
Nine years after the Museum of Maritime and Seafood Industry in Biloxi, Miss., was damaged by Hurricane Katrina’s 30-foot tidal surge, the museum reopened its doors in a brand new, H3-designed building.
| Sep 22, 2014
Swanke-designed Eurasia Tower opens in Moscow
The 72-story tower—the first mixed-use, steel tower in Russia—is located within the new, 30 million-sf, 148-acre Moscow International Business Center.
| Sep 22, 2014
USGBC names 2014 Best of Buildings Award winners
The Best of Building Awards celebrate the year’s best products, projects, organizations and individuals making an impact in green building.
| Sep 20, 2014
Healthcare conversion projects: 5 hard-earned lessons from our experts
Repurposing existing retail and office space is becoming an increasingly popular strategy for hospital systems to expand their reach from the mother ship. Our experts show how to avoid the common mistakes that can sabotage outpatient adaptive-reuse projects.
| Sep 19, 2014
Smithsonian Institution opens LEED Platinum lab facility
The Charles McC. Mathias Laboratory will emit 37% less CO2 than a comparable lab that does not meet LEED-certification standards.
| Sep 19, 2014
8 hot healthcare projects win interior design awards
Winners of IIDA's 2014 Healthcare Interior Design Competition include Perkins+Will, AECOM, Buffalo Design, and SmithGroupJJR, for projects from Cincinnati to Toronto.
| Sep 18, 2014
Final designs unveiled for DC's first elevated park
OMA, Höweler + Yoon, NEXT Architects, and Cooper, Robertson & Partners have just released their preliminary design proposals for what will be known as the 11th Street Bridge Park.
| Sep 17, 2014
Arquitectonica's hairpin-shaped tower breaks ground in Miami
Rising above Biscayne Bay, the 305-meter tower will include three viewing decks, a restaurant, nightclub, and exhibition space.
| Sep 17, 2014
Atlanta Braves break ground on mixed-use ballpark development
SunTrust Park will be constructed by American Builders 2017, a joint venture between Brasfield & Gorrie, Mortenson Construction, Barton Malow Company, and New South Construction.
| Sep 17, 2014
The doctor is in: New consortium to fund research of design's influence on public health
The AIA Design & Health Research Consortium has organized its design and health initiative around six evidence-based approaches.
