Construction on the Rise
Here's some data to confirm everyone's suspicions: Construction is picking up. Total contract values in Philadelphia last year rose to $5.7B, according to BidClerk; Q4 private projects increased by 23% year over year while public projects went up 28.5%. BidClerk singles out Rodin Square (rendered by MV+A Architects) as a notable development actively bidding. The 10-story, mixed-use Art Museum project will have 507k SF and a budget of about $110M. DC's Daljan Development is constructing the project. Oh yeah: Whole Foods is the anchor tenant (with a green roof, natch). BidClerk says to look for groundbreaking come April.
There's been some talk of rising construction costs in the non-residential space, though. According to Turner Construction Co's quarterly building cost index, Q4 '13 saw a 1.15% increase from Q3 and a 4.65% increase from Q4' 12. The index says that both labor costs and material prices are going up as construction demand increases. Are you concerned it will impact Philly's pipeline? Tell us by clicking the survey above.
