Callahan Construction Managers

Expanding in the Empire State: Callahan’s Tri-State Outlook

Callahan is proud of the progress we’ve made growing our footprint in the Tri-State area. When we opened our White Plains office, we were determined to bring the quality we’re known for to new clients across the markets we know best—multi-family and affordable housing, mixed-use and retail developments, and senior living communities.

Like any region, there’s some level of uncertainty everywhere you look—but we’re excited about what the future holds in the Empire State. Here are a few trends and developments we’re keeping a close eye on:

PACT – Permanent Affordability Commitment Together

PACT is a NYCHA program designed to leverage private and non-profit partners to convert eligible public housing properties to Project-Based Section 8. This allows for much-needed capital improvements while maintaining affordability for residents.

Since 2016, more than $7B has been invested into PACT projects, but NYCHA estimates it will take $78B to fully fund the program. There’s a massive opportunity here for meaningful public-private partnerships, though there’s still a lot of work to do.

At Callahan, we routinely work with developers and public agencies to bring affordable housing to life—and we’re optimistic about the positive impact PACT can have in the years ahead.

Market-Rate Housing Outside Manhattan

It’s no secret it’s expensive to live in Manhattan. Over the years, more and more people have looked outside the five boroughs for housing—especially along the Metro-North corridor—finding better value in communities where they can still commute into the city if needed.

We’re expecting to see continued growth in market-rate housing across the suburbs north and east of NYC, extending into upstate New York and parts of New Jersey. This trend opens the door for residents to get into the market without needing to change jobs just to afford it.

Callahan recently completed Alexander Crossing in Yonkers, a project that supports work-from-home lifestyles while still offering proximity to transit. It’s the type of flexible, future-ready development we expect to see more of.

Taller MDUs in Re-Zoned Communities

If you can’t build out, build up. That’s the mindset taking hold in places like Port Chester, New Rochelle, and White Plains, where local leaders are updating zoning to allow for taller residential buildings.

In many of these small-to-mid-sized cities, there’s limited space to expand outward, but increased height allowances for MDUs (multi-dwelling units) could help unlock more housing supply where it’s needed most.

This kind of local policy shift could be just the spark needed to get some long-anticipated projects moving, and we’re watching it closely.

Office and Retail to Residential Conversions

This isn’t unique to New York: cities everywhere are dealing with how to repurpose underutilized office and retail buildings.  And it’s a bigger issue in Westchester because some of these buildings are so large.  Converting them to residential sounds great in theory, but in practice, it’s not always that simple. Between the size and shape, structural constraints, zoning, and cost, it can be a real challenge to make the numbers work.

One potential solution? Blending retail and residential. That’s the approach behind two of our projects, New City and Bay Terrace, where we’re helping turn traditional shopping centers into mixed-use destinations that better reflect today’s living and shopping habits.

Battling the Elements – A Buffet of Outside Forces

Since COVID, our industry has dealt with its fair share of curveballs, from supply chain disruptions and labor shortages to shifting immigration policies and the ever-present wildcard of interest rates and tariffs.

It’s a lot to navigate, which is why strong preconstruction services are more valuable than ever. At Callahan, we help our clients get a clearer picture up front so budgeting and planning doesn’t turn into guesswork. And when it makes sense, our ability to self-perform sitework can create efficiencies that help control costs and improve quality at the same time while most importantly mitigating as much risk as possible.

Bottom Line

The New York market and the surrounding Tri-State area represent real opportunity for Callahan. We’re excited to continue working alongside our public and private sector partners to get much-needed projects out of the ground despite the headwinds our industry continues to face.

To learn more on happenings in the New York market or how Callahan can help with your next construction proejct please contact David Morrow or Phil Dinan.