Construction throughout New York City has seen a major uptick this year, with projects planned well into 2020 and beyond. The addition of the new Amazon campus has commercial real estate investors launching construction projects of their own, from multi-unit residences to storefronts, hotels, and even healthcare centers. However, with so many projects in the works, the cost of construction labor is expected to remain high for the near future.
The Construction Ripple Effect
Having a heavy-hitter like Amazon in NYC is going to impact real estate markets and construction in a very big way. The new Amazon campus could create up to 3,000 new jobs in New York City, not counting construction requirements for the campus itself. The people filling the roles at the new campus are going to need housing, so commercial real estate investors are looking to either build new luxury apartments or renovate existing properties to attract new tenants. From there, investors are already assessing the needs for daycare facilities, shopping, restaurants and nightclubs, hotels, motels, facilities to meed medical needs, and everything else that needs to go in place to support a large corporate installation and its employees.
Large NYC Construction Projects
Amazon hasn’t cornered the market on construction in NYC – it is simply the most recent notable transaction. Queens Plaza Park is slated to be one of the largest new construction projects in NYC. The tower will offer over 970,000 square feet and over 950 apartments, complete with a gym, pool, library, and more. Lighthouse Point is going to offer a whole new experience for retail tenants and shoppers alike. Then there is TSX Broadway, which will replace the Doubletree Hotel. The development project is estimated at $2.5 billion and will house the only permanent outdoor stage in Times Square. With major projects such as these, it is easy to see why the labor pool is tight, resulting in high construction prices.
NYC Construction Financing
Express Capital Financing has provided solutions for NYC construction projects of all sizes. Whether you are taking on your first renovation or if you are planning a large ground-up venture, our team will create a custom financing strategy tailored to the scope of your project. Contact our offices today to learn how Express Capital Financing helps property investors and developers throughout New York City.