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
| Aug 11, 2010
Jacobs, CH2M Hill, AECOM top BD+C's ranking of the 75 largest federal government design firms
A ranking of the Top 75 Federal Government Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Manhattan's Pier 57 to be transformed into cultural center, small business incubator, and public park as part of $210 million redevelopment plan
LOT-EK, Beyer Blinder Belle, and West 8 have been selected as the design team for Hudson River Park’s Pier 57 at 15th Street and the Hudson River as part of the development group led by New York-based real estate developer YoungWoo & Associates. The 375,000 square foot vacant, former passenger ship terminal will be transformed into a cultural center, small business incubator, and public park, including a rooftop venue for the Tribeca Film Festival.
| Aug 11, 2010
AIA selects three projects for National Healthcare Design Awards
The American Institute of Architects (AIA) Academy of Architecture for Health (AAH) have selected the recipients of the AIA National Healthcare Design Awards program. The AIA Healthcare Awards program showcases the best of healthcare building design and healthcare design-oriented research. Projects exhibit conceptual strengths that solve aesthetic, civic, urban, and social concerns as well as the requisite functional and sustainability concerns of a hospital.
| Aug 11, 2010
AGC: Construction employment declines in 47 states in July
Few states were immune from construction employment declines this July based on an analysis of federal employment data released today by the Associated General Contractors of America. That analysis found that 47 states saw declines in construction employment, while only two states saw increases and one saw no change in construction employment between July 2008 and July 2009.
| Aug 11, 2010
AGC: Construction unemployment reaches 19.2%
Unemployment in the construction sector climbed to a “horrendous” 19.2 percent (not-seasonally adjusted) as an additional 59,000 construction workers lost their jobs in May according to new federal data, said construction economist Ken Simonson today.
| Aug 11, 2010
Gensler, HOK, HDR among the nation's leading reconstruction design firms, according to BD+C's Giants 300 report
A ranking of the Top 100 Reconstruction Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Gensler, Arup, HOK among the largest office sector design firms
A ranking of the Top 100 Office Design firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Callison strengthens retail design presence with RYA acquisition
Callison LLC on June 1 acquired RYA Design Consultancy, a Dallas-based retail architecture and design firm with offices in New York City. The new “Callison RYA Studio” will merge staff and clients into Callison ’s existing retail practice at their Dallas and New York offices.
| Aug 11, 2010
Prism-shaped design unveiled for five-star hotel in Saudi Arabia
Goettsch Partners has been commissioned by Saudi Oger Ltd. to design a new five-star, 214-key business hotel in the King Abdullah Financial District in Riyadh, Saudi Arabia. As a design-build assignment, Saudi Oger is serving as the contractor, selected by developer Rayadah Investment Company. The project is sited on Parcel 1.08, one of the first 10 parcels currently under development in the massive new master-planned district.