HAMILTON, NJ – Total construction starts rose 10% in September to a seasonally adjusted annual rate of $889.7 billion, according to Dodge Construction Network. All three sectors improved: nonresidential building starts rose 15%, residential starts went 9% higher, and nonbuilding starts increased by 6%.
Construction starts have struggled over the last three months as concerns over rising prices, shortages of materials, and scarce labor led to declines in activity, stated Richard Branch, Chief Economist for Dodge Construction Network. The increase in September, but, partially allays the dread that construction is headed for a free-fall and shows that owners and developers are still ready to go ahead with projects. Starts are likely to continue to trend in a positive but sawtooth fashion in the coming months until a more balanced recovery takes hold next year.
Below is the full breakdown:
Nonbuilding construction starts rose 6% in September to a seasonally adjusted annual rate of $177.9 billion. Miscellaneous nonbuilding starts (pipelines, site work, etc.) and environmental public works (water, sewers, etc.) each gained 29%, while highway and bridge starts gained less than 1%. On the downside, utility/gas plant starts dropped 53%. Year-to-date, total nonbuilding starts were essentially unchanged through September. Environmental public works were 24% higher, while highway and bridge starts were 2% lower. Miscellaneous nonbuilding fell 14% and utility/gas plant starts fell 10% during the first nine months of the year. For the 12 months ending in September 2021, total nonbuilding starts were 1% lower than the 12 months ending in September 2020. Environmental public works starts were 22% higher and highway and bridge starts were up 3%, while utility and gas plant starts were down 20% and miscellaneous nonbuilding starts were 16% lower on a 12-month rolling basis. The largest nonbuilding projects to break ground in September were the $500 million Whale offshore oil field pipeline near Houston, TX, the $485 million Chimney Hollow Reservoir Dam in Berthoud, CO, and the $450 million repairs to docks at the United States Coast Guard Station in Fort Macon, NC.
Nonresidential building starts rebounded in September, gaining 15% to a seasonally adjusted annual rate of $281.8 billion. Commercial buildings rose 13% as starts improved for the hotel, warehouse, and retail sectors. Office building starts fell. Institutional building starts rose 13% with all sectors but public buildings improving over the month. Manufacturing starts jumped 47% following a particularly weak August. In the first nine months of 2021, nonresidential building starts were 7% higher. Commercial starts increased 8%, manufacturing starts were 38% higher, while institutional starts were up just 2%. For the 12 months ending in September 2021, nonresidential building starts were 1% lower than in the 12 months ending in September 2020. Commercial starts were down 1%, institutional starts rose 1% and manufacturing starts dropped 12% in the 12 months ending September 2021. The largest nonresidential building projects to break ground in September were the $670 million modernization program at Pittsburgh International Airport in Pittsburgh, PA, the $658 million Irvine Campus Medical Complex in Irvine, CA, and the $495 million Phillips 66 Sweeny Hub Fractionator in Sweeny, TX.
Residential building starts rose 9% in September to a seasonally adjusted annual rate of $430 billion. Single family starts gained 9% in September, while multifamily starts increased by 24%. Through nine months, residential starts were 25% higher than in the same period one year ago. Single family starts gained 26%, and multifamily starts grew 20%. For the 12 months ending in September 2021, total residential starts were 22% higher than the 12 months ending in September 2020. Single family starts gained 26%, and multifamily starts were up 10% on a 12-month sum basis. The largest multifamily structures to break ground in September were the $300 million Islablue Apartments in Long Beach, NY, the $256 million Station Square Apartments (phase 2A) in Ronkonkoma, NY, and the $215 million 906 W. Randolph mixed-use project in Chicago, IL.
Regionally, total construction starts improved in all five regions during September.

Powered by WPeMatico

CHICAGO, IL – Greystar, a global leader in the investment, development, and management of high-quality rental housing properties, announced that it is breaking ground on its first high-rise development project in downtown Chicago at 166 N. Aberdeen St. The new building will include 223 apartments in studio, convertible, 1BR, 2BR and 3BR floorplans.
“We’re excited to break ground on Greystar’s first development in Chicago,” Yale Dieckmann, Managing Director of Development, said. “Fulton Market is the most dynamic neighborhood in the city, and we look forward to complementing the area’s substantial office development with high-quality housing. The location is ideal for people who want a walkable neighborhood with access to the best live/work/play amenities in the city.”
“What’s excellent about this development is that it’s excellent for the city. In addition to investment in Fulton Market, we’re going to get affordable housing in West Garfield Park,” Alderman Walter Burnett said. “It’s a win for the west side and a win for the city.”
“This neighborhood represents the future of Chicago,” Deputy Mayor Samir Mayekar said. “To have Greystar, the largest apartment developer in the nation, building their first development in downtown Chicago shows that Greystar is long on the city’s future and long on urban development.”
Greystar is working with architect, plotting and design firm SCB to bring to life a building that includes a nod to the past while also looking to the future with a metal articulated tower about the historic warehouse-like masonry base. Greystar and SCB are utilizing sustainable techniques and plot on seeking Green Globe Certification.
The high-rise will also feature a third-floor amenity level with a 5,650 SF outdoor deck that includes a pool, lawn and lounge areas that have direct access to the co-working and fitness areas. A signature outdoor lounge on the 14th floor faces downtown Chicago and delivers spectacular views of the well-known Chicago skyline.
The building will feature ground-floor retail adjacent to the tower entry. Delivery of first units is plotted for January 2023 with construction completion in March 2023.

Powered by WPeMatico

SAN JOSE, CA – Urban Catalyst, Silicon Valley’s premier Opportunity Zone Fund, announced it has secured its special-use permit and vesting tentative tract map for The Mark, a student-focused high-rise apartment tower to be located downtown a block from San Jose State University.
With its central downtown location, The Mark was designed to help ease SJSU s off-campus housing shortage and provide students with stellar living conditions just a small walk from their classes. The complex, at 475 South 5th St., will feature more than 200 multifamily apartment units that can house over 850 new residents in the Bay Area s largest city. In addition to its proximity to the university s main campus, the project is near the vibrant SoFA Arts District in downtown San Jose.
The concrete and protected steel structure will include multiple outdoor amenities such as open-air decks, as well as student-ready interior common areas and views of the city and SJSU campus. The new community will be constructed with first-class materials and will feature high-speed WIFI/Internet throughout the building.
Our goal is to offer students a robust off-campus experience that complements their educational experience, said Erik Hayden, Founder of Urban Catalyst. And, importantly, The Mark will help address the long-term problem of an off-campus housing shortage around SJSU.
Groundbreaking is expected in 2022 with the complex potentially ready for students by the fall semester in 2024.
We look forward to anchoring the southwestern edge of campus, making a high-density off-campus connection between Washington Square and the SoFA District, said Josh Burroughs, Partner and Chief Operating Officer at Urban Catalyst. These types of projects catalyze our urban environment.
The Mark is one of six projects funded through Urban Catalyst s Fund I, which closed in December with $131 million in investments. Urban Catalyst is now accepting investments for its Fund II.
The project was designed by the student housing division of BDE Architecture in coordination with Gould Evans interior design, and will be managed by Asset Living, one of the largest student housing operators in the United States.
The Mark is a third-party off-campus multifamily apartment project and is not affiliated with San Jose State University.

Powered by WPeMatico