April 22, 2017
By Neal Tepel
New York, NY – The New York City Department of Buildings (DOB) issued 5,641 permits, with a combined value of $9.3 billion, for alterations and renovations (A&R) to existing buildings in 2016, according to a New York Building Congress analysis of construction data from Dodge Data & Analytics.
In 2015, the DOB issued 4,927 permits with a total combined value of $9.1 billion. Building owners were granted 4,964 permits for $8.7 billion in A&R work in 2014, and 3,991 permits for $5.9 billion in 2013.
“Interior construction work is the unsung hero of the current building boom,” said New York Building Congress President and CEO Carlo A. Scissura. “While all eyes are understandably focused on the brand new office and residential towers that are piercing the New York City skyline, an extraordinary amount of important construction work is occurring, largely under the radar, throughout the five boroughs.”
The commercial sector, which is dominated by office buildings, hotels, and retail, accounted for 46 percent of all permits by value in 2016, which is in line with the six-year average of 45 percent. The primary driver in the commercial sector has been office construction. As a result of landlords making upgrades to their buildings and individual tenants building out or renovating their spaces, office work has accounted for more than 70 percent of all commercial A&R permits and approximately one-third of all A&R permits over the past six years.
“Throughout New York City’s existing inventory of nearly 500 million square feet of office space, landlords and tenants are investing billions of dollars to make their spaces more efficient, sustainable, and technologically-advanced,” added Mr. Scissura. “They are doing so partly in response to increased competition from newer buildings and the evolving demands of the 21st century workplace.”