Ingram’s Peter Canty: Construction Is Showing No Signs Of Slowing Down In 2023
Despite economic turbulence, many commercial real estate professionals remain optimistic that the market will stabilize in the coming months. While the latter half of 2022 brought fears of a recession, rising inflation and interest rate hikes, the industry outlook is positive overall, with about 52% of CRE executives saying they expect increased or similar revenues to persist throughout 2023.
Peter Canty, a partner in the construction and design group at Ingram Yuzek Gainen Carroll & Bertolotti LLP, better known as Ingram, said commercial real estate development is showing no signs of slowing anytime soon. In fact, the New York Building Congress predicted that $86B was spent on construction in New York City in 2022, nearly double that of 2021.
“The first half of 2022 brought a 24% overall increase in construction starts in the nation’s top markets compared to the year prior, signaling that the industry remains agile in the face of uncertainty,” Canty said. “Though CRE markets may be volatile right now, the construction field is showing promise.”
Canty will be speaking at Bisnow’s New York Construction and Development Conference Feb. 15. Register here.
Bisnow spoke with Canty to learn more about how his professional experiences have helped shape his career, how Ingram is helping CRE developers across the country do more business and what he is looking forward to at Bisnow’s upcoming event.
Bisnow: What made you decide to speak at Bisnow’s New York Construction and Development Conference?
Canty: This event has been something our firm has been a part of for years now, and I've had the opportunity to speak at it in the past. From both a speaker and attendee perspective, the event is a fantastic opportunity to meet industry professionals that are masters at their craft. It's special to be a part of this event.
Bisnow: How would you best characterize your position at Ingram?
Canty: I’ve been at Ingram for nine years, and the last five years I’ve been a partner. I work in our firm's construction and design group, which consists of nine attorneys. About half of my time is spent on litigation while the other half is spent on transactional work, mostly drafting and negotiating contracts. We represent the gamut of the construction industry, from design professionals to property owners, developers, construction companies and subcontractors. I hold myself to be a jack-of-all-trades when it comes to legal counsel in the construction world, and we try to serve the full array of our clients’ needs.
Bisnow: At the event, you’ll be taking a deeper dive into NYC’s top projects and how developers view activity across the city. What are the biggest obstacles facing the construction industry right now nationally as well as in NYC?
Canty: The most prevalent issues facing the industry right now are supply chain and materials costs.
Many of my clients entered into their contracts years ago, maybe even long before the pandemic. The world was very different back then. If you signed a lump-sum contract in 2019 or early 2020 and suddenly your materials costs have tripled, that clearly presents an issue. From a legal perspective, it's very difficult to go back and change a contract that you wouldn't have entered into four years ago. But looking forward, it is important to be more cognizant of these kinds of situations and trying to build the appropriate protections into your contracts.
Whether I’m wearing my developer's hat, contractor's hat or design professional's hat, my job consists of trying to protect against the unknown and unexpected.
Bisnow: What new trends will 2023 bring for the industry?
Canty: From a business standpoint, I have not seen the construction field slowing down. There's a lot of issues going on with the economy right now, even beyond the construction realm, including inflation, labor shortages, steep interest rate hikes, supply chain challenges and so on. But most of my clients are still busy.
Business is not really slowing. I'm hoping that the industry continues to make progress in the new year.
Bisnow: What are you looking forward to the most about this event?
Canty: Being a part of this esteemed panel is an honor. My co-panelists are very well-respected industry professionals. I think the audience and I can learn a lot from them and they will bring a lot to the table when it comes to answering questions about new trends and themes we will be seeing this year.
To hear more from Canty and other distinguished CRE professionals, register for Bisnow’s New York Construction and Development Conference here.
This article was produced in collaboration between Ingram Yuzek Gainen Carroll & Bertolotti LLP and Studio B. Bisnow news staff was not involved in the production of this content.
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