Institutional Sector Driving Construction Growth in NYC

NEW YORK CITY—In the last five years, buoyed by major projects at LaGuardia Airport, the Triborough Bridge, and the Gowanus Canal Superfund site, institutional construction starts in New York City rose more than 303%, according to a report authored by the New York Building Congress.

The report, based on data from Dodge Data & Analytics, shows that institutional construction totaled $13.9 billion in 2017, up sharply from the $5.2 billion posted in 2016. Public works construction in Manhattan and the outer boroughs also saw a spike last year, rising from nearly $3.48 billion in 2016 to a little more than $5 billion last year. Over the same five-year period, spending increased on residential projects by 56%, on commercial buildings by 69% and on manufacturing projects by 113%.

In total over the five-year span, construction spending in New York City totaled more than $150 billion or 271.1 million square feet of new or renovated space, and the market share from the outer boroughs increased over time.

On average, residential construction accounted for nearly 66% of newly built or renovated square footage in the city. From 2013-2017, non-residential projects typically represented approximately a third of all new or renovated square feet, but in 2017, that sector’s market share increased to 46%, led by significant growth in the construction of institutional and commercial projects, according to the New York Building Congress report.

Some of the top construction starts in the city last year included: the $1.69-billion 50 Hudson Yards project in Manhattan; the $231.8 million Bruckner Expressway-Unionport Bridge project in the Bronx; the nearly $4-billion Delta LaGuardia Airport redevelopment and the $3.4-billion LaGuardia Airport Terminal Replacement project and the $681-million Gotham Center in Long Island City in Queens; the $500-million Gowanus Canal Superfund site and the $410-million CityPoint Phase 3 project in Brooklyn and the $235-million Matrix Global Logistics Park warehouse project in Staten Island.

“As New York continues to grow, the boroughs outside of Manhattan are playing an increasingly large role absorbing new residents and jobs,” says Carlo A. Scissura, president and CEO of the New York Building Congress. “The positive momentum is apparent across the entire city, and last year’s growth in major transportation and infrastructure investments will make our city and region stronger. This data shows that now, more than ever, New York is a five-borough city.”