Construction update: NYC and South Florida

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Construction update: NYC and South Florida

2018 is set to be a record year for construction in NYC, with spending expected to top $52.5 billion, exceeding the 2016 peak of $52.2 billion, according to the New York Building Congress. Building Congress also anticipates the three year outlook of the construction industry to be “white hot.”

In 2018, 15 million square feet of office space is slated for completion in Manhattan, while another 2 million square feet is coming in Brooklyn and Queens. Some of the biggest projects in the works are:

  • Hudson Yards: The Related Companies is slated to complete 55 Hudson Yards this year, and 30 Hudson Yards, the future HQ of Time Warner, in 2019. Related will also break ground on 50 Hudson Yards after securing BlackRock as an anchor tenant in 2017 — the company will move to the west side in 2023.
  • Manhattan West: Nearby, Brookfield Property Partners is targeting an early 2019 finish for 1 Manhattan West, a 62-story office building, and late last year, filed plans for a 59-story office tower at 2 Manhattan West on 31st Street, which is expected to be completed by 2022.
  • Dock 72: Rudin Management and Boston Properties’ Dock 72 will be the first new ground-up office project Brooklyn has seen in many years. The 675,000-square-foot 17-story building at the Brooklyn Navy Yard is partially pre-leased to WeWork, which signed up for 220,000 square feet.
  • The JACX: Tishman Speyer’s $700 million complex in the Queens Plaza section of Long Island City, dubbed the JACX, will become the largest new office building outside Manhattan. The two-tower development is also backed by Doha-based investment firm Qatari Diar and is part of a larger campus, which will also feature three residential towers. WeWork also signed on to take 258,000 square feet while Bloomingdale signed on for the remaining 550,000 square feet of the office building.

Last year, South Florida construction was a tale of two sectors. Commercial construction spiked in 2017 with $5.7 billion in new construction representing a 27-percent increase from 2016 (source: Dodge Data & Analytics).

But on the residential side, it was a different story due in large part to South Florida’s condo market slowdown. Residential construction starts in 2017 dropped 33 percent from 2016 to $5 billion. Miami-Dade, Broward and Palm Beach all reported fewer home sales year-over-year (source: Douglas Elliman).