Across New York City, 2015 saw record-breaking activity. More billion-dollar transactions took place than ever in the city’s history, confirming New York’s significance on the global stage. The New York Building Congress is forecasting that construction spending in New York City will break the $40 billion barrier in 2016 for the first time in the city’s history.

We expect this growth to continue for the next several years as more and more buildings invest in their infrastructure to comply with new codes and Department of Environmental Protection (DEP) requirements.

Neighborhoods in the outer boroughs—particularly Long Island City, St. George in Staten Island, and Roosevelt Island—were also active in 2015. And the surge in construction activity hasn’t been limited to the Big Apple. New Jersey saw tremendous growth in 2015, with a number of foreign investors entering the Garden State. We’re also seeing increased construction in Long Island, Connecticut, and all along the Northeast corridor, from Boston to Washington, D.C.

Construction trends

Amidst the overall boom in urban construction, a few trends have emerged, including the following:

• More hospitality. Hotel construction continues to flourish, both for new and existing buildings. Owners are updating their lobbies and modernizing their infrastructure. As the 2019 sprinkler compliance deadline approaches, more buildings will be updating their fire suppression systems.
• Foreign investment. New York’s stable economy has attracted foreign investment for decades, and today, more foreign investors want to invest in new construction. Countries with strong economies are looking to invest, and construction throughout the greater New York City region is growing as a result.
• Residential peak. The first two quarters of 2015 saw a spike in residential construction, spurred by the June 2015 deadline for the 421a tax abatement program. This program granted tax abatements for up to 35 years in return for developers setting aside a portion of rental apartments as affordable housing. Developers worked hard to get on board for the tax and floor-area benefits.
• Worldwide cities are expanding upward, and New York is no exception. Over the next few years, the city’s skyline will change dramatically. Twenty building projects in development will soar above 900 feet, and 14 of those will stand more than 1,000 feet. Expect real estate values to skyrocket as well—in addition to the need for more infrastructure investments.

Unified voice

Last year, Milrose Consultants joined seven other firms to launch a new professional organization, the New York Coalition of Code Consultants (NYCCC). Milrose Senior Vice President and Managing Partner Domenick Chieco serves as Chair of the NYCCC.

The group presents industry needs to the DOB in a balanced and informed manner to facilitate positive change. Already the NYCCC has been recognized by established organizations and has been instrumental in articulating issues on behalf of the industry. In 2015 the NYCCC provided valuable input on the DOB’s first-ever Code of Conduct for the construction industry. Adopted by the DOB in July 2015, the code set a higher standard of ethics for the agency and its users.

The NYCCC continues to partner with the DOB to increase transparency, accountability and professionalism within the construction industry and looks forward to the industry’s collective achievements in 2016.

Embracing change

For more than a quarter century, Milrose Consultants has helped organizations and companies navigate these and other challenges. During that time our role has evolved from expediters, shepherding permit applications through the system, to consultants, helping clients navigate the complex municipal compliance path.

Precision has been the key to our success. In this industry, that precision has been vital to helping our clients achieve success with their developments. This is an exciting time, and in this fast-changing landscape, a knowledgeable guide is more important than ever to bring projects to completion.

As we look toward the future’s opportunities and challenges, we wish to express our thanks for your support. We look forward to continuing our partnership in 2016 and beyond.