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
| Feb 22, 2011
LEED Volume Program celebrates its 500th certified Pilot Project
More than 500 building projects have certified through the LEED Volume Program since the pilot launched in 2006, according to the U.S. Green Building Council. The LEED Volume Program streamlines the certification process for high-volume property owners and managers, from commercial real estate firms, national retailers and hospitality providers, to local, state and federal governments.
| Feb 22, 2011
HDR Architecture names four healthcare directors
Four senior professionals in HDR Architecture’s healthcare program have been named Healthcare directors.
| Feb 15, 2011
Iconic TWA terminal may reopen as a boutique hotel
The Port Authority of New York and New Jersey hopes to squeeze a hotel with about 150 rooms in the space between the old TWA terminal and the new JetBlue building. The old TWA terminal would serve as an entry to the hotel and hotel lobby, which would also contain restaurants and shops.
| Feb 15, 2011
New Orleans' rebuilt public housing architecture gets mixed reviews
The architecture of New Orleans’ new public housing is awash with optimism about how urban-design will improve residents' lives—but the changes are based on the idealism of an earlier era that’s being erased and revised.
| Feb 15, 2011
LAUSD commissions innovative prefab prototypes for future building
The LA Unified School District, under the leadership of a new facilities director, reversed course regarding prototypes for its new schools and engaged architects to create compelling kit-of-parts schemes that are largely prefabricated.
| Feb 15, 2011
New 2030 Challenge to include carbon footprint of building materials and products
Architecture 2030 has just broadened the scope of its 2030 Challenge, issuing an additional challenge regarding the climate impact of building products. The 2030 Challenge for Products aims to reduce the embodied carbon (meaning the carbon emissions equivalent) of building products 50% by 2030.
| Feb 15, 2011
New Urbanist Andrés Duany: We need a LEED Brown rating
Andrés Duany advocates a "LEED Brown" rating that would give contractors credit for using traditional but low cost measures that are not easy to quantify or certify. He described these steps as "the original green," and "what we did when we didn't have money." Ostensibly, LEED Brown would be in addition to the current Silver, Gold and Platinum ratings.
| Feb 15, 2011
AIA on President Obama's proposed $1 billion investment in energy conservation
The President’s budget increases the value of investment in energy conservation in commercial buildings by roughly $1 billion, reports AIA 2011 President Clark Manus, FAIA. The significant increase from the current tax deduction of $1.80 per sq. ft. now on the books is an increase for which the AIA has been advocating in order to encourage energy conservation.
