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June 29, 2011
The Good News About the Bad Construction News
NY Observer
by Tom Acitelli
The Building Congress yesterday came out with an understandably bleak construction report showing sluggish growth during the Great Recession in new office space, among other things, and not holding out too much hope for the rest of 2011. This year, in fact, will mark the first since 2000 with no new office tower opening.
...It could have been worse, much worse.
One of the reasons it was not: New York City did not overbuild commercially during the boom.
...Had that not been the case–had the last decade been one of barn-burner construction–vacancy rates could have been a lot higher, rents a lot lower, and, eventually, construction financing and jobs that much harder to come by. Why build more when there are empty towers everywhere? (Ever been to downtown Detroit?)
The city may as yet get its chance to have overbuilt, with the World Trade Center construction and the proposed Hudson Yards; and lesser commercial undertakings like Columbia’s West Harlem expansion and whatever finally, maybe, comes up commercial-wise with Atlantic Yards.
Posted by eric at June 29, 2011 9:38 AM