According to Dodge Data & Analytics, a ranking of the top U.S. metropolitan areas by the dollar amount of new commercial and multifamily construction starts shows the New York City metropolitan area leading the nation during the first half of 2015. A total of $17.3 billion in commercial and multifamily projects in the area reached groundbreaking from January to June 2015 – a 72 percent increase from the same time period one year ago.
Miami ranked No. 2 in the leading commercial and multifamily construction starts in the first half of 2015, with $3 billion spent on those projects. The remaining top metropolitan areas include Washington, D.C., at $2.4 billion; Boston at $2.2 billion; and Seattle at $2.1 billion.
The New York City metropolitan area during the first half of 2015 showed growth in both the commercial and multifamily sectors compared to the first half of 2014. Commercial building was up 84 percent, while multifamily building was up 67 percent. Large commercial building projects included two structures at the Hudson Yards development on Manhattan’s West Side – one worth $1.2 billion and the other worth $400 million. Additionally, 24 multifamily housing projects valued at $100 million or greater reached groundbreaking in the New York City metropolitan area during this time period.
“Market fundamentals such as occupancies and rents continue to show improvement, which supports further growth for commercial and multifamily construction,” says Robert Murray, chief economist for Dodge Data & Analytics. “While the expansion for the overall economy remains tepid, as shown by the 2.3 percent growth for GDP in the second quarter, commercial and multifamily development continues to be a prime focus of the investment community in its search for yield.”
