HAMILTON, NJ – The value of commercial and apartment buildings in the top 20 metropolitan areas of the United States increased 12% in the first six months of 2021 compared to the first half of 2020, according to Dodge Data & Analytics. At the national level, housing starts for commercial and apartment buildings were 10% higher year-on-year over six months. In the top 10 metropolitan areas, commercial and apartment building starts rose 12% in six months, with only three metropolitan areas – Washington DC, Los Angeles CA, and Austin TX – seeing declines. In the second largest group of metropolitan areas (ranks 11-20), launches rose 11% year-over-year, with only Phoenix AZ, Houston TX and Chicago IL losing ground.
The first few months of the pandemic resulted in construction freezes and project delays in many of the country's largest cities, resulting in very little activity in April and May 2020. You can get additional insights into the health of these markets by comparing the first six months of 2021 to the same period of 2019 – before the pandemic. On this basis, the number of new commercial and apartment buildings established in the top 20 metropolises fell by 9%. At the same time, they were 5% lower nationwide, suggesting that the pandemic has had a greater impact on construction activity in larger cities. In the top 10 metropolises, business and multi-family start-ups up to six months were 20% lower than in 2019, while they were 13% lower in the metropolitan regions in places 11 to 20.
Greater New York was the top market for commercial and multi-family launches over six months at $ 12.6 billion, an 8% increase over the first half of 2020. Metropolitan Dallas, TX was second for commercial and multi-family launches a total volume of US $ 4.5 billion over six months, an increase of 12% compared to 2020. The Washington DC area was in third to six months, but lost 7% to US $ 4.3 billion. The remaining top 10 metropolitan areas through the first half of 2021 were: Boston, MA up 34% ($ 4.0 billion), Miami, FL up 26% ($ 3.5 billion), Los Angeles, CA , up 22% ($ 3.4 billion), Philadelphia, PA up 86% ($ 3.3 billion), Seattle, WA up 61% ($ 3.2 billion), Atlanta, GA by 2% ($ 2.5 billion) and Austin, TX, less than one percentage point ($ 2.5 billion).
In summary, 40% of all company and multi-family starts in the USA were in the top 10 metropolises – the same proportion as in the first six months of 2020.
The second largest subway group included: Phoenix, AZ up 10% ($ 2.5 billion), San Diego, California, up 171% ($ 2.2 billion), Houston, TX, up 30% ($ 2.2 billion), Denver, CO up 64% ($ 2.1 billion)), Nashville, TN up 53% ($ 2.0 billion), San Francisco, CA up 114% ($ 1.9 billion), Chicago, IL minus 54% ($ 1.9 billion), Minneapolis, MN plus 71% ($ 1.7 billion), Kansas City, MO up 60% ($ 1.6 billion) and Orlando, FL, rose 11% ($ 1.5 billion).
This group of metropolitan areas accounted for 18% of all commercial and multi-family launches in the United States within six months, the same percentage as the previous year.
The sum of commercial and multi-family houses is made up of office buildings, shops, hotels, warehouses, commercial garages and multi-family houses. Institutional projects (e.g. educational institutions, hospitals, convention centers, casinos, traffic terminals), production buildings, single-family houses, public works and electricity / gas plants are not included in this ranking.
In the first six months of 2021, total US commercial and apartment building starts increased 10% over the same period in 2020 to $ 108.5 billion. At the national level, commercial housing starts rose 3% to 56.1 billion on an annual basis. In the top 10 metropolitan areas, commercial housing starts rose 1% to $ 20.6 billion in six months, while apartment housing starts rose 23% to $ 23.3 billion. In the second largest group of metropolitan areas, housing starts for commercial buildings were 3% lower in six months to 9.8 billion.
"The recovery from the COVID-19 pandemic has started but is very uneven," said Richard Branch, chief economist at Dodge Data & Analytics. "Commercial construction has been buoyed by strength in the warehouse sector as large e-commerce companies expand their logistics infrastructure while office, retail and hotel activity is subdued. Starts for apartment buildings have rallied solidly after a weak 2020. The The dollar value of commercial and multi-family starts is likely to continue to improve in the next six months, but growth will remain subdued due to high material prices and a shortage of skilled workers in the construction sector. "
In the New York, NY metropolitan area, commercial and apartment building startups rose 8% in six months to $ 12.6 billion, but remained 18% below the first six months of 2019. Apartment buildings rose in the first six months at 11 %. The largest multi-family projects beginning through the first half of 2021 were the $ 500 million 625 Fulton St mixed-use projects, the $ 349 million first phase Bronx Point mixed-use project, and the US $ 242 million -Dollars mixed buildings of the National Urban League. Year to date, commercial launches were 4% higher, led by increases in warehouse and parking lots, while office and hotel launches were lower than in the first six months of 2020. The largest commercial projects on the way in six months The $ 1.2 billion refurbishment of the Terminal Warehouse, an Amazon warehouse worth $ 316 million and the $ 160 million renovation of Two Penn Plaza.
Commercial and apartment buildings in the greater Dallas, TX area rose 12% to $ 4.5 billion in the first six months, also beating the mark set in the first half of 2019. Commercial launches increased 2% year over year. driven by growth in warehouse, office and parking garages, while retail and hotel launches declined. The largest commercial projects launched in the first six months of 2020 were the Hardwood No. 14 office tower, valued at $ 150 million, the JW Marriott Hotel, valued at $ 85 million, and the $ 60 million -Dollar expensive Facebook Data Center Building 14th annual basis. The largest multi-family projects, running six months through 2021, were the $ 250 million Maple Terrace residential building, the $ 100 Urby residential tower, and the $ 90 million apartments on North Beckley Avenue.
In the greater Washington, DC area, housing starts for commercial and apartment buildings decreased 7% year-over-year to $ 4.3 billion in the first six months, but 41% from the first six months of 2019. Apartment buildings rose to six by 12% months. The largest multi-family projects launched were the 267 million. Commercial launches were 22% lower in six months, with only parking garages showing improvement over last year. The largest commercial projects in the wings were the $ 450 million Sterling EdgeCore data center, the $ 100 million third phase of the Cannon House office building, and the $ 100 million Dulles Discovery 5 office building .
Housing starts for commercial and apartment buildings in Boston, MA, grew 34% to $ 4.0 billion in the first six months of the year, but remained 8% below the first half of 2019. Housing starts were at $ 4.0 billion Increase of 47% particularly strong. with growth in all commercial sectors with the exception of the hotel sector. The largest commercial projects undertaken in the first half were the Amazon North Andover Fulfillment Center, valued at $ 466 million, the 171 Dartmouth St office building, valued at $ 225 million, and the 40 Thorndike office building im Worth $ 175 million. The number of starts with multiple families rose by 22%. The largest apartment buildings to begin with were the $ 200 million DOT Block Residences, the $ 165 million Union Square residential tower, and the $ 165 million SCAPE Boylston residential building.
Commercial and multi-family home startups in the Miami, FL metropolitan area rose 26% to $ 3.5 billion in six months, up 2% from the first half of 2019. Apartment blocks rose 38 in the first six months %. The largest multi-family projects launched within six months were the $ 250 million condominium and apartments Five Park, the $ 200 million Downtown 1-apartment building, and the $ 164 million mixed-use building Natiivo. Commercial starts rose 11%, driven by increases in parking lots and retail buildings, while hotels, offices and warehouses all declined. The largest commercial projects to begin with were the Bridge Point warehouse project, valued at $ 122 million, the $ 75 million Boca Raton Resort, and the $ 65 million Collection Jaguar & Land Rover dealership.
Commercial and apartment buildings in Los Angeles, California declined 22% to $ 3.4 billion in the first six months of 2021, down 10% from the first half of 2019. However, this is exclusively due to the office and hotel sector, where the groundbreaking ceremony was recorded for several major projects at the beginning of 2020. All other commercial sectors have been above water this year to date. The largest commercial projects undertaken in the first half of 2020 were the $ 100 million Ovation Hollywood mixed-use complex, the $ 66 million second phase of the Spectrum Terrace office campus, and the $ 49 million Dollar Expensive Office Buildings Exposition 3. Apartment building numbers increased 6% in five months. The largest apartment buildings to come online in the first half were the $ 250 million mixed building 520 S Mateo Arts District, the $ 215 million mixed building Broadway Block, and the $ 125 million The Line at Burbank Apartments .
Philadelphia, PA, new business and apartment building startups grew 86% year-to-date to $ 3.3 billion, 19% higher than the first half of 2019. Multi-family homes grew 142% in six months. The largest multi-family projects launched through June were the $ 287 million Schuylkill Yards West Tower, the $ 100 million 5th & Spring Garden mixed-use apartments, and the $ 100 million 19th & Sansom Apartments . Commercial launches, meanwhile, rose 43% in six months. All commercial sectors saw solid gains in 2020, with the largest gains being in warehouses and offices. The largest commercial projects launched were the $ 143 million Amazon warehouse, the $ 99 million Port Logistics Center at the Logan warehouse, and the $ 95 million Keystone Trade Center Building.
In Seattle, WA, commercial and apartment housing starts rose 61% to $ 3.2 billion in six months and 54% through the first half of 2019. Commercial home starts rose 69% due to strength in office and residential buildings Warehousing sector, while hotel and parking garages declined. The largest commercial projects to emerge were the $ 355 million Amazon distribution center Project Roxy, the $ 325 million office project Amazon Bellevue 600 Tower One, and the $ 270 million office project The Eight. The number of apartment buildings rose by 48% in the first half of 2020. The largest multi-family projects to emerge were the multi-family portion of the Block 37 Google Campus project valued at $ 150 million, the mixed-use First Light project valued at $ 131 million, and the $ 90 million US dollar U District mixed use project.
In Atlantica, GA, commercial and multi-family home startups rose 2% to $ 2.5 billion, but were 28% below the first half of 2019. Multi-family home startups declined 7% in six months. The largest multi-family projects launched in the first half of 2021 were the mixed-use 1015 Boulevard project valued at $ 73 million, the Townes of Auburn townhouses valued at $ 67 million, and the $ 58 million -Dollar Verge Apartments. Commercial launches were 9% higher for six months. The hotel, retail and warehouse sectors all saw gains over six months, while the park and office sectors declined. The largest commercial projects launched within six months were the Signia Hilton Hotel at $ 271 million at the Georgia World Congress Center, the $ 100 million 222 Mitchell Street Redevelopment, and the $ 59 million Northwest 75 Logistics Center Building B.
Austin, TX home starts for commercial and apartment buildings were down less than one percent in six months and were 9% below the first half of 2019. Commercial home starts were 39% lower, with only deals closing within six months Recorded growth. The largest commercial projects in the wings were the $ 75 million Applied Material Logistics Warehouse, the $ 62 million Amazon SAT6 distribution facility, and the $ 27 million Texas Bankers Association building. Housing starts for apartment buildings were 46% higher in six months. The largest apartment buildings to come under construction were the $ 250 million Waller Apartments, the $ 232 million Travis Residential Tower Building 1, and the $ 150 million Hannover Brazos Street Apartments.