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New York

Construction costs continue to climb in NYC

Office construction played a big part

Carlo Scissura (Credit: Getty Images and iStock)
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.

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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.

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Commercial Real EstateDevelopmentOffice Market