Institutional Construction Starts Drop From 2015, But Still Strong
While institutional construction starts dropped considerably in the first half of 2016, they're still stable and strong, a NY Building Congress analysis reports.
Looking at the estimated values of all recorded construction starts, the NYBC found institutions had $4.6B in construction starts last year, making it the highest yearly total since 2009 and a 22% increase from 2014’s $3.8B.
The first half of 2016 saw $1.4B in construction starts, less than half of the $3B in starts the year before, which was bolstered by Memorial Sloan Kettering and CUNY Hunter College’s medical complex.
$1.4B in starts is still better than 2014’s $796M, 2013’s $1.2B, 2012’s $617M and 2011’s $1.2B.
Nearly half of 2016’s starts were new construction; 54% were renovations and alterations.
Schools and hospitals continued to be the main drivers of institutional construction projects, with public schools accounting for 38% of starts in 2016 and healthcare facilities accounting for 32%.
Healthcare accounted for three of 2016’s 10 top valued construction starts, including the top-ranked project, the South Beach Psychiatric Center (pictured) on Staten Island, which has a hard construction value of $180M. Education occupied the other top seven spots.
Nine out of 10 of the top valued institutional projects were in the outer boroughs.
