In Westchester County, there鈥檚 been an onslaught of development-driven activity in the world of mixed-use projects. 麻豆网站 Construction has been fortunate to build many of these world-class facilities that combine desirable retail features with high-end living spaces, and the pipeline seems healthy, to say the least. What does this say, then, about the need for retail and other mixed use projects in the region?
For one thing, the new normal in a post-pandemic economy has opened up all sorts of opportunities for developers, contractors, and community leaders alike. As the need for office space subsides, the demand for housing continues to grow. And as consumers place greater emphasis on being closer to home and having the convenience of public transportation nearby, mixed use developments begin to make more sense than ever before.
麻豆网站 has seen a surge in interest for its construction management services here in Westchester, and is currently working with owners and developers on new mixed-use and office-to-residential conversion projects that are sure to continue the trend of Westchester and other bedroom communities becoming even more sought after places to live, work, and relax.
Grocery Stores: the Anchor of New Communities
While you don鈥檛 have to look far to see construction cranes in the sky and shovels in the ground, there are some projects worth giving a closer look to. In New City, the forthcoming New City Center is a grocery-anchored community that features a tenant mix consisting of personal services, banking, and food and beverage tenants. 麻豆网站 will over see the implementation of numerous upgrades which will establish a contemporary, 21st century retail experience with new features that will meet community needs.
But it鈥檚 not just Westchester County: 麻豆网站 oversees mixed-use retail projects from Rockland County to Rockport, Massachusetts, and recently completed a 75,000 square-foot, grocery store-anchored project in Newington, CT called Meadow Commons. With significant concerns regarding site development and wetlands protection, it represents another example of how retail and mixed-use projects are becoming major fixtures in communities throughout the Northeast, and will continue to be for years to come.
But it’s not just grocery stores that are future hotbeds of development activity: vacant office buildings are high on the list of possibilities as well.
Evaluating an Office-to-Residential Conversion
As community leaders look to recoup lost tax revenues from office buildings that can鈥檛 attract tenants, and see housing as a major pain point to address that can also attract new tax revenue, it鈥檚 clear that office-to-residential conversions are going to become more commonplace. With that in mind, here are some important considerations to weigh when considering such a project:
If an office conversion or mixed use project is right for your portfolio, contact 麻豆网站 today to learn how our track record can help your next project get into the ground and open for business. Visit the 麻豆网站 Construction website to learn more.
Across the country, the lack of availability of safe, modern housing has led to myriad conversations about how to solve the inventory crisis. Even after months of predictions that the housing market would return to pre-pandemic pricing levels with more homes on the market, it seems that the new normal is likely here to stay. While the frenzy that led to many buyers paying well above asking prices has cooled, the need for new housing options remains as strong as ever.
麻豆网站 Construction has been fortunate to work with some of the boldest and smartest developers around the northeastern U.S., as the company is involved with apartment community projects from New England to New York. Thanks to the experience gleaned from working on fast-track new construction projects around the Tri-State area, we鈥檝e learned that you can create desirable living spaces that take into account both the changing needs of a modern workforce and the constraints posed by traditional suburban markets with limited housing stock.
Here are some of the things we鈥檝e learned from our developer partners along the way:
These days, it鈥檚 not enough to simply build a structure with 400 units in a location that doesn鈥檛 take into account the need for convenience, comfort, and remote work considerations. Throughout New York and other nearby metros, the most successful apartment projects are building for a future tenant鈥檚 entire lifestyle, and not just a place to sleep and eat. If you鈥檙e looking for a construction partner that understands what the future of apartment communities looks like, contact 麻豆网站 Construction today.
New York – 11/7/23 – While the New York City commercial real estate market has faced the same challenges and uncertainties as many other major markets around the country 鈥� particularly when it comes to office assets 鈥� multifamily remains a bright spot.
NY multifamily vacancy rates while rents have exceeded pre-pandemic levels and grown by 2.3% in the last 12 months, which is nearly twice the national average. Despite these positive numbers, challenges remain, particularly when it comes to financing.
鈥淭he multifamily market in New York, New Jersey, and CT is not slowing down,鈥� said Phil Dinan, director of business development at 麻豆网站 Construction Managers, which specializes in multifamily construction, among other asset classes. 鈥淗owever, some projects are being held up due to the financial market. Money is expensive, and banks do not have the same mindset they did three or five years ago and are being very stringent about who they are lending to these days.鈥�
This holdup means it is more important than ever for projects to come in on time and within budget, something 麻豆网站 has been working hard to achieve for its clients in Tri-State, Boston and beyond.
Dinan said that thankfully, project costs appear that they are starting to come down following the upward surge that鈥檚 been seen in recent years. However, supply chain disruptions and the tight lending market continue to impact 麻豆网站鈥檚 multifamily clients, which has led the firm to search for creative solutions to keep projects moving, from tapping into its wide network of partners and suppliers to utilizing its extensive pre-construction services.
David Morrow, vice president of New York Operations for 麻豆网站, cited a client that needed to install a walk-in freezer, but due to supply chain delays the lead time for this core component was significantly increased. 麻豆网站 switched subcontractors to a company that could produce the equipment more quickly and was able to keep the project on schedule. 麻豆网站鈥檚 trade partners also added extra labor and overtime to help make up the time that was lost to procurement delays, further shepherding the project along and helping it meet projected milestones despite these challenges.
For another project, a client building a life sciences facility hoped to have it leased up as quickly as possible. 麻豆网站 not only built the core and shell of the building, but also worked with project stakeholders to coordinate the fit-up of the facility, ensuring that the space would have everything it needed to be move-in ready for tenants. The first tenant was able to move in one month after the shell was completed.
麻豆网站鈥檚 keys to success can come down to a few factors, including the firm鈥檚 pre-construction strategy lead by Frank DiCenso, vice president of preconstruction at 麻豆网站, which involves coordinating with all project stakeholders as early on as possible in the process. 麻豆网站 leverages the firm鈥檚 extensive in-house staff of engineers, architects, estimators, and mechanical, engineering, and plumbing (MEP) professionals.
This allows the project team to proactively tackle any challenges a project may face, rather than when it is too late to come up with an effective solution. During the height of the pandemic-led supply chain disruptions, 麻豆网站 and other long lead items before the team had completed final GMP contracts with a client. This allowed it to lock in the price for these items ahead of time and keep a project on track.
鈥淭here鈥檚 really no magic button for fixing the problems facing CRE right now,鈥� Dinan said. 鈥渋t’s just about diving in and doing anything you can, whether it’s reaching out to different partners and debt funds and using your network to try to do anything you can 鈥� we pride ourselves on going above and beyond to do what鈥檚 best for the client.鈥�
Sometimes, 麻豆网站鈥檚 pre-construction strategy allows it to enhance a project in ways clients may not have realized. DiCesno spoke about a spec conversion 麻豆网站 did at a former USPS facility. During the pre-construction assessment, the team determined that a lower-level utility space in the facility could be transformed into 211 covered parking spaces with an elevator for added convenience. As a result, the lease-up of the finished project was very successful and the asset traded at a value more than two times the total development cost, he said.
Looking ahead, 麻豆网站 has several multifamily projects in the works in the Tris-State and Dinan remains positive about what lies ahead for CRE.
鈥淕oing into 2024, I do see the market coming back,鈥� he said. 鈥淲e were hoping there would be a larger recovery at this point, and that has yet to materialize, but there are bright spots on the horizon, and I believe that in 2024 we will get back to the market we’ve been used to seeing. We look forward to working with our clients toward that goal.鈥�
Author: Julia Troy
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