Artificial intelligence (AI) has clearly taken multiple industries by storm. Finance, marketing, academics, and myriad others are embracing the rise of AI while also trying to understand the exact role it will play in the workforce of the future. The construction industry is also beginning to explore the potential of artificial intelligence and machine learning to drive efficiencies into the jobsite, along with improvements to safety and quality.

AI doesn’t mean you’re turning over the control of the jobsite to a machine; in fact, humans are likely to play an even greater role in daily operations as AI acts as a partner tool to allow project managers and executives to focus on high-quality work and begin leaving basic tasks in the hands of an AI solution.

At Callahan Construction, our internal AI council is already experimenting with AI tools along with the integration of software that uses AI to expedite key tasks. Below are some of the technologies Callahan is considering implementing to harness the power of AI:

For now, Callahan’s AI committee is looking to build out the various use cases for AI and create a library that will provide guidance on how to standardize AI throughout the company. One path already being considered is using an AI tool like CoPilot to reference internal documents and provide Callahan-specific responses to prompts.

When it comes to helping free up its teams to focus on delivering highly specialized services to its clients, Callahan is eager to deploy AI tools that will take repetitive processes off a project manager’s plate. The company is hoping AI will someday soon be used for specific tasks like reviewing plans and specs for building submittal logs, scanning preliminary reviews of submittals, finding potential scope gaps, and more. While it’s impossible to see what the future holds, it’s obvious AI will play an outsized role in the AEC industry.

Jason Costello, Assistant Project Manager

The life sciences market is rapidly changing – that much we know. While no one can predict the future, it is possible to build a cutting-edge laboratory and research facility that will adapt to the changing needs of scientists and researchers. That’s what is unfolding at 440 Bedford, a completely new approach to lab space in the coveted Lexington submarket.

440 Bedford Street is a new 6-story, 335,000 GSF Class AA speculative life science lab and office building being built by Callahan Construction. When finished, the building will include incubator lab space, graduator lab space, lab-ready spaces, a café, fitness center and other amenities. The building will also feature a retail and restaurant space on the first level and several outdoor amenities, along with a 6-level parking garage with parking for 575 vehicles. Put simply, this isn’t just a place to come work; it’s a destination for collaboration and an extension of one’s lifestyle.

Callahan’s pre-construction expertise was on full display during the early phases of the project, as the construction team discovered soil deficiencies that had the potential to cause substantial delays to the project schedule and significant costs to the budget if not resolved as early as possible. The preconstruction team as well as Callahan’s Site Division were able to find solutions to the problem that kept the project on schedule, saved money for the client, and strengthened trust between all parties on the project.

440 Bedford will feature numerous high-end touches, including modern interiors designed to inspire, flooded with natural light and plenty of amenities to keep scientists balanced. And with its location in the sought-after Lexington and Hartwell Avenue submarket, 440 Bedford offers ease of access to both the building and nature, not to mention proximity to other innovative companies and industries along with mass transit.

“Callahan is excited to once again leverage its experience with complex projects including laboratories and research facilities, along with our robust portfolio of pre-construction services, to build 440 Bedford,” said Steve Callahan Jr., Vice President – Business Development, Callahan Construction. “The team behind this project in Lexington knows how important it is to bring this cutting-edge research space to market, and we look forward to seeing it filled with the people and projects changing our world for the better.”

For more information about Callahan’s pre-construction services, please visit https://callahan-inc.com/our-services/enhanced-preconstruction-services/.

In Westchester County, there’s been an onslaught of development-driven activity in the world of mixed-use projects. Callahan 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.

Callahan 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’t 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. Callahan 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’s not just Westchester County: Callahan 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’t attract tenants, and see housing as a major pain point to address that can also attract new tax revenue, it’s 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:

  1. Consider the state of the superstructure: does it need extensive work to add sufficient density? A residential building needs to support a minimum number of occupants to be financially viable.
  2. What is the existing HVAC and M/E/P setup, and does it support a residential use? Will it need extensive re-work to meet the needs of building occupants? Where are the elevators located, and will they need to be moved?
  3. Perform an overall constructability assessment. Not every building is well-suited for a residential conversion. Make sure you’re starting with a building that makes sense to convert.

If an office conversion or mixed use project is right for your portfolio, contact Callahan today to learn how our track record can help your next project get into the ground and open for business. Visit the Callahan 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.


Callahan 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’ve 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’ve learned from our developer partners along the way:

These days, it’s not enough to simply build a structure with 400 units in a location that doesn’t 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’s entire lifestyle, and not just a place to sleep and eat. If you’re looking for a construction partner that understands what the future of apartment communities looks like, contact Callahan 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 — particularly when it comes to office assets — multifamily remains a bright spot.

NY multifamily vacancy rates remain at near-historic lows 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.

“The multifamily market in New York, New Jersey, and CT is not slowing down,” said Phil Dinan, director of business development at Callahan Construction Managers, which specializes in multifamily construction, among other asset classes. “However, 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.”

This holdup means it is more important than ever for projects to come in on time and within budget, something Callahan 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’s been seen in recent years. However, supply chain disruptions and the tight lending market continue to impact Callahan’s 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 Callahan, 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. Callahan switched subcontractors to a company that could produce the equipment more quickly and was able to keep the project on schedule. Callahan’s 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. Callahan 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.

Callahan’s keys to success can come down to a few factors, including the firm’s pre-construction strategy lead by Frank DiCenso, vice president of preconstruction at Callahan, which involves coordinating with all project stakeholders as early on as possible in the process. Callahan leverages the firm’s 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, Callahan was purchasing steel 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.

“There’s really no magic button for fixing the problems facing CRE right now,” Dinan said. “it’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 — we pride ourselves on going above and beyond to do what’s best for the client.”

Sometimes, Callahan’s pre-construction strategy allows it to enhance a project in ways clients may not have realized. DiCesno spoke about a spec conversion Callahan 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, Callahan has several multifamily projects in the works in the Tris-State and Dinan remains positive about what lies ahead for CRE.

“Going into 2024, I do see the market coming back,” he said. “We 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.”

Author: Julia Troy

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