Construction starts picked up in 2017, thanks to large institutional and public works projects

Spending fell on residential, commercial developments

TRD New York /
Feb.February 05, 2018 11:00 AM

(clockwise from top l.) LaGuardia Airport, Moynihan Station and the Jacob Javits Center

Construction starts picked back up again last year, totaling $37.78 billion on the back of public works and institutional projects.

That was the second-highest total since 2010, according to information from Dodge Data & Analytics reported by the Commercial Observer.

Spending hit $41 billion in 2015, but then dropped to $31.93 billion the following year.

In 2017, spending on institutional projects like transportation terminals, convention centers and schools exploded by 166 percent to $13.94 billion, up from just $5.23 billion in 2016.

“The basic message is that construction activity in the New York City market is continuing at a healthy pace,” Robert Murray, Dodge’s chief economist and a vice president, told CO. “What is changing is whereas before the upward push came from commercial building and multifamily, now the upward push is coming from the institutional and public works side of the industry. And this is similar to the national level.”

Spending on institutional and public works projects made up roughly half of the total construction starts last year.

At LaGuardia Airport, the $4 billion redevelopment of Delta Air Lines’ Terminals C and D, along with the $3.6 billion redevelopment of the Central Terminal B Building accounted for a large part of the increase. The $1.2 billion worth of construction to expand the Jacob K. Javits Convention Center and the $1.3 billion for the redevelopment of the James A. Farley Post Office helped pad the numbers.

Construction starts on residential buildings saw another year of declines, coming in at $10.75 billion last year. That was 3 percent below 2016’s total of $11.05 billion and 43 percent below 2015’s sum of $18.95 billion.

On the commercial properties side, construction starts totaled $7.84 billion, a 34-percent drop from $11.91 billion in 2016. [CO] – Rich Bockmann


Related Articles

arrow_forward_ios
Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

New York Building Congress President & CEO Carlo Scissura (Credit: Getty Images, iStock)

Construction spending expected to hit nearly $190B between 2019 to 2021: report

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

From left: Pavel Fuks, Michael Cohen, Felix Sater, and Donald Trump (Credit: Getty Images and Wikipedia)

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

arrow_forward_ios