Construction costs continue to climb in NYC

Office construction played a big part

TRD New York /
Feb.February 07, 2019 09:00 AM

Carlo Scissura (Credit: Getty Images and iStock)

Construction costs in New York City have increased steadily since 2010, and last year was no different with a 5 percent jump.

A new report released by the New York Building Congress points to a concentration of work in the office, luxury multifamily and infrastructure sectors as part of the reason for rising costs. According to data from Rider Levett Bucknall, the average cost of building office space is $575 per square foot in New York, while multifamily construction costs an average of $375 per square foot. The cost of building office projects in the city is the highest in the country, passing up Boston ($475), Chicago ($450), Washington D.C. ($425 per square foot), Los Angeles ($350), San Francisco ($330) and Denver ($255).

According to the Building Congress, high demand on labor and materials is also a major cause for cost inflation. The cost of structural steel increased 9 percent year-over-year; diesel fuel, 52 percent; lumber, 23 percent and copper pipe, 14 percent, according to the report.

Related Articles

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

The agreement was signed today at UBC’s New York Council offices in Manhattan by Nathan Blecharczyk, Airbnb co-founder, Chief Strategy Officer, and Frank Spencer, General Vice President of UBC.

Airbnb hammers out partnership with carpenters’ union

WeWork co-CEOs Sebastian Gunningham and Artie Minson (Credit: Getty Images, iStock, Twitter)

WeWork lease-signing sinks to five-year low in New York