Office Construction in New York City Hits Record High

Thanks, in part, to giant megaprojects like the World Trade Center and Hudson Yards, office construction in New York City is at its highest levels since 1990, according to a new report by the New York Building Congress. Those massive developments alone will contribute nearly 7.4 million square feet to the 9.7 million square feet of office space that will be built in 2015 and 2016, to be spread across 19 office buildings. 4.3 million will be built this year, nearly double the 2.4 million of last year. And, "for the 10 years between 2010 and 2019, the Building Congress forecasts a total of 29.5 million square feet of new office space will be built."

The report notes that even though this is a record-breaking year, it still "pale[s] in comparison to the period between 1968 and 1973, when 72 million square feet of new office space was delivered." (For reference, the original World Trade Center opened during that time period, as did 1 New York Plaza.) But still, 29.5 million square feet is nothing to scoff at.

Some more fascinating stats from the report:

· Six towers will be completed (either fully or partially) in 2018, making that the biggest year for openings.
· But the single biggest year for construction will be 2016, when 5.4 million square feet of office space is expected to be built.
· Spending on alterations and renovations (A&R) is also on the rise: In 2014, A&R projects at office buildings accounted for $2.7 billion.
· According to the report, "In the period between 2000 and 2009, New York City added 22.3 million square feet of newly-built office space," but that was affected by a loss of 10 million square feet of space after 9/11.
· Unsurprisingly, Manhattan has the lion's share of existing office space in the city—a whopping 84%, with 81% of that located below 60th Street.
· The report notes that "some 27 million square feet of office space is expected to be leased in 2015," which is right within the typical range of 16 and 30 million square feet leased per year.

· New York City Construction Outlook Update [NYBC]
· NYC office construction hits highest level in 25 years [Daily News]
· All Revenge of the Megaprojects Coverage [Curbed]