Industry gets ready for more good things to come.

As they were getting ready to close the book on one of the best years in the City's history, members of New York's construction industry expressed confidence that the building boom will continue well into 2006.

By any measure, 2005 has been a blessing for the builders. Not only did the residential market reach its zenith, with new condominium projects and conversions taking place on every corner, the City has started work on several major transportation developments and the commercial sector began to recover, with an increasing number of corporate interiors jobs. According to the Department of Buildings statistics, New York received 7,139 applications for new construction projects in 2005, not counting requests for alteration work.

"2005 has been an exciting and dynamic year, with new areas being developed, such as downtown West Side at the Hudson river, and 2006 will continue the same excitement and drama," said Jerome Belson, president of the Associated Builders and Owners of Greater New York. "New York City requires continued rebuilding and, in our opinion, the evidence is that there is no bubble."

"All around, it's been a great year--very busy, and it's going to get even better," said Michele Medaglia, president of ACC Construction, who noted that her firm has had a near 50% increase in corporate interiors projects in 2005. "I think the hotels are going to come out full swing with renovations--there is going to be a lot more work in hospitality and a really big increase in the financial sector and I think that's going to drive the growth. There is just a lot of movement in the industry, a lot of people doing deals right now--companies are growing, the market is doing better."

Andy Frankl, president of IBEX Construction, also believes that corporate interiors are going to be the next big thing, in addition to a number of potential projects in the retail sector.

"It looks like the next sector will be corporate, as the residential work tops out a little bit," he noted. "And it looks like Nordstrom and Neiman Marcus [might] increase their market share, as well as target some lower-priced brands and take more locations. So the outlook for 2006 is good--my guess construction is going to maintain the same pace, but it will be in different segments."

But what about worries about the bubble bursting and the rising cost of materials? According to several people, these concerns have been vastly overestimated.

"I foresee a slow, but steady increase in activity--I think the bubble talk is much ado about nothing. The construction demand has been driven mostly by a strong regional and national economy and supply and demand factors, so I don't see anything on the horizon that might interfere with that," said Jason Muss, principal of Muss Development.

"I don't know if 2006 will be much busier, but I expect it to be at least as active," noted Mark Varian, president of John Gallin & Son. "People tend to get concerned about the cost of construction, but it doesn't prevent them from moving forward with their plans. It's one of the factors that they just tend to live with.