“There are another good year or two ahead of us, particularly in the sectors we are involved in,” says Bob Mullen, CEO of Structure Tone.
Mullen sees strength in the commercial and corporate space. He cites build-outs by technology companies such as Amazon, Facebook and Google, but also among smaller tech firms such as Pinterest and Gawker.
There is also a lot of interior work, a Structure Tone specialty, as broadcast and media firms relocate. He mentioned Time Warner’s move to the building that Related Cos. is constructing in Manhattan’s Hudson Yards.
The strength in the New York economy is also spurring demand in the retail and commercial space, with clients such as law firms and retailers moving or upgrading their space. Macy’s revamped its flagship Manhattan store and is accelerating plans to revitalize its downtown Brooklyn store as well.
“Several office buildings are being repositioned,” Mullen adds. Building that have become worn out or have fallen into Class B or C status, are upgrading their space to bring them up to date.
Some of that work also includes skins, he said, providing work for the company’s PavariniMcGovern construction management affiliate.
The institutional sector, including education and health care, is another market showing strength, Mullen says. The trend toward adding health facilities in more regional communities is pushing work outside of New York City. For example, Jersey Shore University Medical Center is building a new wing in Neptune, N.J., and Memorial Sloan Kettering is building one in Middletown, N.J., scheduled to open in 2016.
Mullen says architectural firms are busy with work lined up for at least a year. “We keep a close eye on that,” he says. “It means we’ll be busy for another two years or so.”
Health Care and Higher Ed
Looking ahead, Turner Construction also sees a significant increase in the health care and higher education sectors as well as in the multifamily residential sector, which was stronger in 2015 than it has been since 2007, says Charles F. Murphy, the firm’s senior vice president for the New York region.
