Developers Wave Goodbye to Empty Costs

NEW YORK CITY – Developers are waving goodbye to empty construction costs as they place greater emphasis on the future use of projects as opposed to traditional, initial costs for materials and a layout that doesn’t maximize space usage, according to Rob Budetti, partner at architecture firm AO, specializing in commercial, retail, hospitality and mixed-use, tells GlobeSt.com.

Whether considering between block or brick, and sourcing materials locally or abroad, controlling price has been key for developers. And now they’re weighing material usage against adaptability for a range of use cases. Aside from costs and with the future in mind, developers are looking to downsize aspects of a traditional building that qualify as dead space, such as grandiose parking lots and large elevator lobbies short of value-add amenities.

“There’s a lot of empty costs. And they’re stacking as national retailers look at whether they have dead stairs or elevators,” RC Alley, partner at AO, specializing in multifamily and mixed-use, tells GlobeSt.com.