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
| Apr 30, 2012
HSA Commercial selected as consultant for Orland Park’s Main Street Triangle project
HSA will be responsible for designing an overall mixed-use merchandise plan, attracting a unique retail tenant mix and completing leases with prospective tenants.
| Apr 30, 2012
Gilbane to manage retrofit of the Fraunhofer CSE R&B structure
Building is a first-of-its-kind research and demonstration building for sustainable technologies in Boston's Innovation District.
| Apr 30, 2012
KBE Building completes renovation at the ConnCAT
The $1.2 million project consisted of a 16,000-sf interior renovation.
| Apr 27, 2012
GreenExpo365.com to offer webinars on EPA’s WaterSense Program
Architects and builders interested in developing water-efficient buildings invited to attend free sessions featuring experts discussing water-efficient building practices.
| Apr 27, 2012
APA launches wood design web portal for building and design pros
Design professionals who are members of APA’s Professional Associates are automatically enrolled in the APA Designers Circle program.
| Apr 27, 2012
China Mobile selects Leo A Daly to design three buildings at its new HQ
LEO A DALY, in collaboration with Local Design Institute WDCE, wins competition to design Phase 2, Plot B, of Campus.
| Apr 27, 2012
CSM Group names Comerford as senior project manager
Comerford’s responsibilities include directing and verifying contract compliance by the trade contractors to ensure the owner’s expectations are met in respect to a quality finished project.
| Apr 27, 2012
Hampton Bays Middle School winner of the first National Green Ribbon Schools Program
School was the first LEED-certified public school in the state of New York.
| Apr 26, 2012
USGBC announces inaugural Green Apple Day of Service
On Sept. 29, 2012, participants from all over the world will volunteer to make the schools and campuses in their communities healthier and more sustainable.
| Apr 26, 2012
Gensler's Leiserowitz: Employs holistic philosophy to foster clients' creativity, comfort
Leiserowitz became regional managing principal in Chicago for San Francisco-based architecture and design giant Gensler a little more than a year ago.
