Two U.S. cities on both coasts are home to ongoing construction booms.
According to a new study from Turner and Townsend, Seattle and New York City are two of the hottest markets for construction. In fact, the 2016 International Market Survey named these two cities as “overheating” and placed them ahead of other world cities such as San Francisco, London, Dubai, Beijing and Moscow.
The Seattle Boom
Seattle is currently home to just under 685,000 residents. The city has been cited as one of the fastest-growing areas around the country. In fact, as reported by The Seattle Times, Seattle is fourth on a list for the 50 largest cities primed for the most growth. The report, released in May 2016, marked the third consecutive time Seattle appeared on the list.
Between 2014 and 2015, Seattle grew by 2.3 percent, ahead of Miami, but lower than Denver, Fort Worth, Texas, and Raleigh, North Carolina. With the recent population increases, Seattle is now the 18th largest U.S. city.
A variety of factors have contributed to Seattle’s rapid growth, one of them being the increase in jobs throughout the technology industry. The area has long been home to two of the largest companies in Microsoft and Amazon, with the latter having their global headquarters in the South Lake Union neighborhood.
But according to TechCrunch, the last decade has been one full of change in the Seattle tech industry. Startups and small companies used to make it an objective to be bought up by larger industry companies. As a result, Microsoft and Amazon remained the largest, while there was no middle ground because the smaller companies were only existing for a short time before being bought.
That’s changed. Companies and well-known digital services have moved into the area to fill that void in the middle. For instance, the real estate service Zillow and the travel aggregator Expedia each have a presence in Seattle. TechCrunch stated not only are there companies valued at $100 billion in the city, but an array of companies valued from $100 million to $10 billion are also located in the area.
Another factor in Seattle’s growth has been a trend of larger companies whose main campuses are elsewhere opening up engineering offices in the city. Alibaba, Google, Facebook, Dropbox, Apple and Hulu are only a handful of the big-name firms that have opened dedicated engineering offices in Seattle.
The Resulting Construction Boom
With an influx of jobs comes a need for more housing and office space. According to Downtown Seattle, 65 buildings are currently under construction, with another 115 in the predevelopment stage. Forty-three buildings have also been completed.
The number of buildings currently being built represents the most construction since 2006, with the city’s downtown area being especially popular among developers.
All told, investment has totaled nearly $3.5 billion. In 2011, all construction projects cost a projected $1.5 billion.
Residential projects represent the biggest area of development, with Downtown Seattle tallying 142 projects in June 2016. This does not mean 142 buildings are being built. Instead, the 142 projects encompass renovations, new construction or remodels that change the structure of a building.
Office space is second at 44 projects, followed by hospitality with 14 and the medical field rounding out the areas where the most construction is occurring. With regards to hotels, the vast majority of projects are for travelers and guests, as 552 rooms have been completed with another 608 in the midst of construction. What’s more, 2,577 hotel rooms are in the predevelopment phase.
Seattle’s growth has matched levels first seen in 2006 and 2007, but the recession led to a dip in construction costs in 2010. While it took a few years, developers show no signs of slowing down in order to meet the demands of a growing city.
Continuous Construction on the East Coast
Construction in New York City is not anything new, but as it continues to carry the mantle of a global power and attract new residents constantly, the city demands more projects for residential and commerical use.
One part of the city in particular is home to numerous projects: Hudson Yards. According to The Real Deal, which discusses NYC real estate news, the two largest projects that started in the last year were in Hudson Yards.
The area is currently home to the largest private real estate development in the history of the U.S., as the official construction website stated. Development is currently broken up into two phases, with an expected completion date in 2024. By then, approximately 125,000 individuals will live or work in Hudson Yards. Plans call for 17 million square feet of residential and commercial space, which includes a hotel, public school and 14-acre park.
These projects will not only add more space for residents and businesses, but it will also create 23,000 construction jobs.
— Curbed NY (@CurbedNY) June 16, 2016
The Need for Storage
With so much construction going on in Seattle and New York, crews will have to make sure they have enough storage space to house tools, equipment and other necessary supplies, such as safety equipment.
But construction projects are fluid and have to meet deadlines. Traveling back and forth to a storage facility miles away will waste valuable time that could otherwise be used for more important tasks. Mobile storage containers solve this issue by providing crews with enough space to store everything they need on-site and in a secure manner.