MOVING BACK UP

After a decline last year, NYC construction costs have increased modestly over '09— between 0.8-4.9% depending on how good you are at haggling for Portland cement (and many other factors)— according to a New York Building Congress review of multiple cost indices. The good news, notes NYBC prez Dick Anderson: The city is in no way experiencing the relentless cost escalation that marked the building boom.
Pictured is one of NYC's busiest construction hubs, the World Trade Center, which we visited last month. While a recent slowdown in construction activity has likely lessened some inflationary pressure, NY construction spending remains above $20B annually, NYBC says. It also appears that recent increases have been driven more by changes in volatile commodity prices, such as diesel, copper, aluminum, and steel, rather than wage increases. Dick suggests that there are measures in land use, procurement, operations, and workforce management and recruitment than can be adopted by the government and construction industry to achieve tangible cost savings. Overall, NYC fares better than London ($288/SF vs.$418/SF), Tokyo, and Sydney, but is higher than most major Asian cities. Domestically, we're lower than Honolulu and San Francisco, and on par with Boston and LA.

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