Revisiting our 2016 Predictions and Forecasting the 2017 Game Changers
As 2017 continues to gain momentum, we pause briefly to reflect back on what captured our attention in 2016.
In summary, during the past year, Phase 1 of the long-awaited Second Avenue Subway finally came to completion, supertalls dominated conversations, proposals to rezone Midtown East gained traction, Hudson Yards secured huge deals week after week, and construction spending surpassed $40 billion for the first time in New York City’s history.
In last year's Partner Perspective, we tried our hand at predicting four construction trends that would make an impact in 2016. Below we revisit our 2016 predictions and see how we did.
1. More Hospitality
At the start of 2016, we predicted hotel construction would continue to flourish and in fact, permit applications for new hotels increased by 31% from 2015 to 2016.
2. Foreign Investment
New York City continued to attract foreign investment in 2016 as New York City displaced London as the number one global city for foreign investment.
3. Residential Peak
In 2015, we saw a huge spike in residential construction permits due to the expiring 421a tax abatement program. Following the tax program’s expiration, residential permit applications took a dip in 2016.
4. Worldwide Cities Expand Upward
With many supertall skyscrapers rising in New York City, 2016 marked a new era for the monsters that will radically reshape Manhattan’s skyline.
Admittedly, 2016 has been a great year for us here at Milrose. Our New York City Headquarters office led the pack on all transactions filed in NYC while Milrose New Jersey, Connecticut, Philadelphia, and Westchester showed brisk activity and an exciting outlook for 2017 as well.
Looking forward into 2017, we forecast the following trends will be at the forefront of development and activity:
1. Adaptive Reuse
As companies begin to migrate into newly created buildings, causing more existing building stock to open up, building owners will have the opportunity to reimagine existing building spaces and transform them into new experiences that rival the best of the City’s latest entries.
An exceptional example of adaptive reuse in New York City is One SoHo Square. The project involved fusing two pre-war buildings – 233 Spring Street and 161 Sixth Avenue – into one office complex in Hudson Square.
Photo: Stellar Management
2. Greater East Midtown Rezoning
Once approved, the proposed Midtown East rezoning plan will unlock the development potential of vintage buildings, allowing them to be redeveloped and reengineered to compete with new Class A buildings.
3. Second Avenue Subway
Phase 1 of the Second Avenue subway is done but it’s only just the beginning. The new subway line will lead to sound investment in redeveloping and creating new beautiful spaces for people to live, work, and play across the East Side.
4. Biotech Boom
Finally, we predict the “Sleeper of the Year Award” will go to the city and state’s recent announcements to invest in the City’s life sciences sector. With a total of $1.15 billion vowed in investments, this could be a perfect launching pad for New York’s biotech industry to go big.
5. Energy Code Drives Higher-Performing Buildings
With regard to code and compliance, New York's new energy code will cut 70,000 metric tons of carbon over the next three-year code cycle and continue to lead the way in driving higher building performance - making our buildings better citizens of the world.
Data Graph: Urban Green Council
In reflecting back on 2016 and imagining what the future holds for 2017, we can’t help but feel truly proud to support our clients and the monumental projects that shape our great city and the tristate area. On behalf of Milrose Consultants, we wish you all a prosperous, productive, and healthy 2017.
Let the building continue.
