Building business booming in a city of stand-outs.

The first four months of 2006 have been exceptionally good ones for the New York City office space market, and correspondingly for the construction industry.

Following a trend that began in the early months of 2005, many companies are optimistically leasing adjacent space and building new interiors, anticipating a slew of new hires. As vacancy rates continue to fall to historic lows around New York City, requests for new and pre-built interiors are coming in hot and heavy.

Citywide, commercial vacancy rates are hitting all-time lows this year, with current estimates at 6.8 percent. Midtown is leading the charge, but even Manhattan's downtown market, which had a tough year in 2005 largely due to construction delays at Ground Zero, is steadily increasing thanks to midtown's unprecedented occupancy.

What we are seeing here at ACC is that many companies are eager to move into the Manhattan market or to quickly expand their current space, and the demand for high-quality custom built-outs is stronger than ever.

ACC Construction has worked on an exceptionally large number of boutique advertising and accounting firms lately looking to establish a presence in New York City. In addition, management companies and landlords have enlisted our services to provide pre-built space between 1,200 and 5,000 s/f.

Pre-built space is a wonderful solution for newly formed firms, for companies that desire a New York City presence and for those that need a fast relocation. Pre-builts can be installed quickly and with minimal disruption, and are also a less expensive but high quality alternative to new construction.

Another aesthetic trend in office interiors is taking place above street level.

A huge new presence in high-visibility Manhattan office buildings are financial institutions, which often seek top-quality construction consisting of high-end built-outs. Hedge funds and financial services account for a good percentage of ACC Construction's new accounts, and these are clients who know the value of a well-designed and soundly constructed interior.

These offices are often located in high-profile buildings in desirable business districts, where space is not only at a premium price-wise, but increasingly hard to come by as well. The new wisdom for many financial companies is that projecting a strong, high quality image is key to success, and this thinking is a leading factor shaping office interiors.

The New York City office market is clearly bursting with opportunities, but another sector is booming as well. Construction of new hospitals and renovation of existing facilities has been a core market for ACC Construction.

We recently completed the $18.5 million modernization of Stony Brook University Hospital Heart Center, which entailed an intensive two-phase plan to allow for continuous operation of the facilities.

Hospital construction is one of the most challenging and rewarding areas of construction because it requires expertise in the most up-to-date technology, innovative planning and design to accommodate each facility's unique function and features as well as absolute precision in every step of the process.

Branded retail is also big business throughout the city with the advent of chain and franchise stores in several categories, such as themed restaurants, home supplies and children's clothing. What defines these stores is their uniform, trademark look from one location to the next.

ACC Construction recently completed its 15th Cold Stone Creamery outlet at the Atlantic Terminal Mall. The project comprised a build out of an 1100 s/f ground-level space that required the installation of electrical, plumbing, ceramic tiles, ADA-compliant bathroom, kitchen equipment, millwork and new storefront. Crucial to Cold Stone Creamery's growing presence in New York is the tight coordination of owner-supplied trades and equipment, which give the store its branded appearance.

ACC Construction is proud to be at the forefront of new construction technology and innovation in a diverse range of building projects. 2006 has started out with a bang for ACC as well as for the construction, real estate and corporate industries.

Last year saw the addition of 40,000 new jobs in New York City alone, including 17,000 office jobs, and 4.5 million square feet of positive absorption. This year is on track to far surpass those numbers. In short, this is going to be a very good year.

MICHELE MEDAGLIA,

PRESIDENT, ACC CONSTRUCTION