City building boom drives up construction costs

Construction firms are jacking up their prices as a building boom in the city has created high demand for their work, said a new report.

Building costs have risen 15 percent to 20 percent for developers in the past two years, according to Crain's New York Business.

Contractors are getting fatter profit margins as materials such as steel, concrete and glass have actually fallen in price during this period.

Those prices have been depressed because of a major drop in demand from China, which has the world's largest construction market.

For firms that are particularly scarce like those that install facades on buildings and pour concrete, prices have gone up as much as 30 percent.

Tenants will feel this burden in the form of higher rent.

New construction in Manhattan averaged $1,800 per square foot during the third quarter — up from $1,422 in two years, appraisal firm Miller Samuel told Crain's.

The higher costs are particularly difficult for agencies such as the MTA and the Port Authority, which have some of the country's largest construction projects. The cost of the train station at the World Trade Center that will open in 2015, for instance, has nearly doubled to $4 billion.

The construction industry has rebounded from the recession in 2008 — when its value tumbled by billions and about 20,000 workers were laid off.

Anda sedang membaca artikel tentang

City building boom drives up construction costs

Dengan url

https://susuvirus.blogspot.com/2014/12/city-building-boom-drives-up.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

City building boom drives up construction costs

namun jangan lupa untuk meletakkan link

City building boom drives up construction costs

sebagai sumbernya