MetroGrid Report: New York City’s Colleges and Universities

FOCUS ON NYC SUBMARKETS

September 2016

Rendering: Cornell Tech Campus, Roosevelt Island

New York City: The Ultimate College Town

New York City is well known as the capital of finance, “The higher education sector is a major and largely business, media, and theater but many fail to realize that it’s underappreciated driver of New York City’s economy,” also the ultimate college town. the study concluded. “The city’s colleges and universities account for substantial and growing contributions to regional To put it into perspective, roughly 535,000 students attend employment, earnings, and population, as well as economic undergraduate, graduate, and degree-credit programs at activity and output.” New York City’s 105 institutions of higher learning, which is more than the entire population of Atlanta, according to According to the report, the city’s colleges and universities NYC-EDU: Building a 21st Century College Town, a study contributed “an estimated $7.5 billion to Gross City Product conducted by the New York Building Congress. in 2012; employed 113,000 men and women in 2013, up MetroGrid Report | New York City’s Colleges and Universities FOCUS ON NYC SUBMARKETS Real estate investment services

Rendering: NYU Washington Square Park Campus Expansion Rendering: Columbia University Manhattanville Campus Expansion

from fewer than 79,000 workers in 2000; and engaged The NYC Construction Update reported that the “2015 in sponsored research projects that were valued at $1.97 surge” was largely due to groundbreakings for Cornell billion in 2012. Tech’s Bloomberg Center and a separate residential building for faculty and students on the Roosevelt Island campus; Between 2008 and 2013, a period when construction Rockefeller University’s new laboratory and conference slowed following the financial crisis, colleges and facility that is being built over the FDR Drive; and Hunter universities started 463 construction projects. “With an College’s Science and Health Professions Building, which estimated value of $4.2 billion, the higher education sector is being developed in conjunction with Memorial Sloan- represented approximately 5 percent of all public and private Kettering Cancer Center. construction starts throughout the city,” the New York Building Congress study showed. “Of the total, academic Additionally, New York University is converting the former institutions accounted for $2.8 billion and medical colleges MTA headquarters at 370 Jay Street in Downtown Brooklyn for $1.4 billion of construction starts.” “into a major innovation hub for science, technology, media, and the arts; and will soon begin construction on an The New York Building Congress estimates that during the 800,000 square foot multiple-use building at 181 Mercer five-year period, college and university construction projects Street as part of its campus expansion plan.” resulted in about 30,000 construction jobs, and, with the multiplier effect, a total of 45,000 temporary jobs and $3.6 Other significant projects include Columbia University’s billion in labor income. Additionally, $4.2 billion of direct continued construction on its new Manhattanville Campus, spending generated $6.5 billion in sales of construction- which when completed will include 6.8 million square feet related materials and services. of academic and support space on a 17-acre campus spanning from 125th Street to West 133rd Street. Construction at New York City’s college and universities continues to grow at a rapid clip and jumped from No doubt students remaining in New York City after $379 million in 2014 to $1.3 billion in 2015, which is graduation contributed to the 4.6 percent rise in population “four times greater than the annual average for higher from 8.175 million in 2010 to 8.55 million in 2015, as well education construction starts during the five-year period as to the increase in the number of New Yorkers with a stretching from 2010 through 2014,” according to the NYC bachelor degree or higher, which rose from 27.4 percent in Construction Update, a separate report published by the 2000 to 35.9 percent in 2014. New York Building Congress on April 13, 2016.

2 2013-2017 Weil Cornell Medical College, which is putting the nishing touches on its $622 million Belfer Research Building. THE ECONOMIC IMPACT OF HIGHER ED CONSTRUCTION NEAR-TERM OUTLOOK While the majority of these projects will be privately nanced by Construction starts by New York’s colleges and universities over the higher education sector in the City’s economy. Specically, In preparation of this report, the New York Building Congress, on the sponsoring organizations, much of the cost for construction of the past ve years accounted for approximately 30,000 person- these outlays will directly produce a dramatic $6 billion increase in the initiative of its Higher Education Committee, conducted a survey public institutions will be paid by the State of New York, which years of construction employment. AŸer factoring in the multiplier Gross City Product and a $9.6 billion increase in construction- of New York City institutions of higher learning regarding recently operates the SUNY and CUNY systems, though CUNY also receives e—ect, construction activity was responsible for a total of 45,000 related business revenues, while likely creating 71,200 person-years completed, ongoing, and proposed construction spending.1 The funding from the City of New York. temporary jobs and $3.6 billion in labor income for the overall New of direct employment. 2013-20172013-2017 WeilWeil Cornell Cornell Medical Medical College, College, which which is isputting putting the the nishing nishing touches touches Building Congress, in collaboration with the research rm Urbanomics, onon its its $622 $622 million million Belfer Belfer Research Research Building. Building. York City economy. In addition, theTHE $4.2THE billionECONOMIC ECONOMIC of direct spending IMPACT IMPACT OF OF HIGHER HIGHER ED ED CONSTRUCTION CONSTRUCTION used the survey responses in conjunction with other available data InNEAR-TERM additionNEAR-TERM to the direct OUTLOOK OUTLOOK and indirect economic benets from generated $6.5 billion of construction and related business sales As impressive as the direct impact on the City’s economy promises sources to derive its forecast for higher education construction this capital investment, which are described in more detailWhile Whileon the the majority majority of of these these projects projects will will be be privately privatelyin response nanced nanced by by to the expanded demandConstructionConstruction for construction-related starts starts by by New New York’s York’s colleges colleges and and universities universitiesto be, the over over total economicthethe higher higher impacteducation education will sector sector be in much inthe the City’s City’s greater economy. economy. as Specically,the Specically, demand thethe sponsoring sponsoring organizations, organizations, much much of of the the cost cost for for construction construction of of the past ve years accounted for approximately 30,000 person- these outlays will directly produce a dramatic $6 billion increase in theIn Inpreparation following preparation of page,of this this report, report,the thedevelopments the New New York York Building Building also Congress, Congress,will relieve on on pressure materials and services.2 the past ve years accounted for approximately 30,000for building person- materialsthese andoutlays development-related will directly produce a dramatic services $6 billion recirculates increase in spending in New York City from scal years 2013 through 2017. thethe initiative initiative of of its its Higher Higher Education Education Committee, Committee, conducted conducted a surveya survey publicpublic institutions institutions will will be be paid paid by by the the State State of of New New York, York, which which yearsyears of of construction construction employment. employment. AŸer AŸer factoring factoring in inthe the multiplier multiplier GrossGross City City Product Product and and a $9.6a $9.6 billion billion increase increase in inconstruction- construction- onof ofcapacityNew New York York City byCity institutions allowing institutions ofsome of higher higher future learning learning growth regarding regarding in recently institutionalrecently operatesoperates the the SUNY SUNY and and CUNY CUNY systems, systems, though though CUNY CUNY also also receives receives e—ect,e—ect, construction construction activity activity was was responsible responsible for for a totalathrough total of of 45,000 45,000 the economy, relatedrelated triggering business business revenues, revenues, successive while while likely likelyrounds creating creating of 71,200 production 71,200 person-years person-years Over that ve-year period, the Building Congress forecasts higher employmentcompleted,completed, ongoing, ongoing, and andenrollment. and proposed proposed construction Those construction institutions spending. spending.1 The 1 withThe expectedfundingfunding from from the the City City of of New New York. York. From scal years 2010 through 2012,temporarytemporary $2 billion jobs jobs andper and $3.6 year $3.6 billion billionwas in invested inlabor labor income income for for andthe the overall consumption overall New New ofwithof direct direct multipliers employment. employment. that may reach as high as 1.57. York City economy. In addition, the $4.2 billion of direct spending education construction spending will reach $9.85 billion. If realized, newBuildingBuilding development Congress, Congress, in incollaboration estimate collaboration anwith with average the the research research eight rm rm Urbanomics,percent Urbanomics, growth in by all institutions in capital expendituresYork City on economy. new and In addition, improved the $4.2 billion of direct spending usedused the the survey survey responses responses in inconjunction conjunction with with other other available available data data In Inaddition addition to to the the direct direct and and indirect indirect economic economic benets benets from from generatedgeneratedMetroGrid $6.5 $6.5 billion Report billion of of construction| constructionNew York City’sand and related Collegesrelated business business and Universities sales sales AsAs impressive impressive as as the the direct direct impact impact on on the the City’s City’s economy economy promises promises employment per year through 2017, and a ve percent increasethis capital in investment, which are described in more detail on this would be a continuation of the nearly $2 billion in physical sourcessources to to derive derive its its forecast forecast for for higher higher education education construction construction this capital investment, which are described in morefacilities. detail on It generated roughly 15,000in inresponse responseperson-yearsFOCUS ONto to NYCthe the expandedSUBMARKETS expanded of employment demand demand for for construction-related construction-relatedWhen this multipliertoto be, be,e—ect the the total total is economicconsidered, economic impact impact the will will beplanned be much much greater greaterexpenditures as as the the demand demand enrollmentspendingspending in inNew per New York year York City Citythrough from from scal scal 2017. years years In 2013 2013addition, through through 2017. the 2017. Cornellthe Techthe following following page, page, the the developments developments also also will will relieve relieve pressure pressure materialsmaterials and and services. services.2 2 forfor building building materials materials and and development-related development-related services services recirculates recirculates investments these institutions made annually over the previous per year, and the labor income associated with this employment of $9.85 billion will likely generate $14.65Real billionestate investment in total servicesoutput, or development is expected to require 780 faculty and administrativeonon capacity capacity by by allowing allowing some some future future growth growth in ininstitutional institutional throughthrough the the economy, economy, triggering triggering successive successive rounds rounds of of production production three years. employmentemployment and and enrollment. enrollment. Those Those institutions institutions withaveraged with expected expected $1.2 billion per year. business earnings, and nearly $10 billion in increased Gross City jobsOverOver while that that ve-year accommodatingve-year period, period, the the Building Buildingnearly Congress Congress600 new forecasts forecasts students. higher higher FromFrom scal scal years years 2010 2010 through through 2012, 2012, $2 $2 billion billion per per year year was was invested invested andand consumption consumption with with multipliers multipliers that that may may reach reach as as high high as as 1.57. 1.57. educationeducation construction construction spending spending will will reach reach $9.85 $9.85 billion. billion. If Ifrealized, realized, newnew development development estimate estimate an an average average eight eight percent percent growth growth in in byby all all institutions institutions in incapital capital expenditures expenditures on on new new andProduct. and improved improved On the employment side, based on a 1.4 multiplier, 100,000 The higher education institutions surveyed for this report expect thisthis would would be be a continuationa continuation of of the the nearly nearly $2 $2 billion billion in inphysical physical employmentemployment per per year year through through 2017, 2017, and and a vea ve percent percentThe impactincrease increase in of in this investment on thefacilities.facilities. NewNYC-EDU: ItYork Itgenerated generated City roughly Buildingeconomy roughly 15,000 15,000 was aperson-years person-years 21st Centuryperson-years of of employment employment College of employmentWhenWhen Town this this multiplier multiplier should e—ect e—ect be is createdisconsidered, considered, over the the plannedthe planned forecast expenditures expenditures enrollmentenrollment per per year year through through 2017. 2017. In Inaddition, addition, the the Cornell Cornell Tech Tech to make major investments in a wide range of existing and new investmentsinvestments these these institutions institutions made made annually annually over over the the previous previous represented by the increase in Grossperper Cityyear, year, and Product and the the labor labor generated income income associated associated by with with this thisperiod, employment employment and aggregateofof $9.85 $9.85 labor billion billion earnings will will likely likely generate should generate $14.65 increase$14.65 billion billion by in intotal $8 total billion.output, output, or or threethree years. years. developmentdevelopment is isexpected expected to to require require 780 780 faculty faculty and and administrative administrative averagedaveragedA Study $1.2 $1.2 billion Conductedbillion per per year. year. by the New York Building Congressbusinessbusiness earnings, earnings, and and nearly nearly $10 $10 billion billion in inincreased increased Gross Gross City City facilities, including performing arts and research centers, new jobsjobs while while accommodating accommodating nearly nearly 600 600 new new students. students.development. Most of the value Product.Product. On On the the employment employment side, side, based based on on a 1.4a 1.4 multiplier, multiplier, 100,000 100,000 academic buildings, dormitories, and utilities, highlighted by TheThe higher higher education education institutions institutions surveyed surveyed for for this this report report expect expect added was re¡ected in employment TheThe impact impact of of this this investment investment on on the the New New York York City City economy economy was was person-yearsperson-years of of employment employment should should be be created created over over the the forecast forecast construction of the rst phase of the $2 billion Cornell Tech toto make make major major investments investments in ina widea wide range range of of existing existing and and new new and wages and represented a representedrepresented by by the the increase increase in inGross Gross City City Product Product generated generated by by period,period, and and aggregate aggregate labor labor earnings earnings should should increase increase by by $8 $8 billion. billion. development.development. MostDirect Most of of the and the value value Total Economic Impact of Higher Education Construction Spending in NYC facilities,facilities, including including performing performing arts arts and and research research centers, centers, new new gain of $3.9 billion over the three campus on Roosevelt Island. Those survey respondents who shared academicacademic buildings, buildings, dormitories, dormitories, and and utilities, utilities, highlighted highlighted by by addedadded was was re¡ected re¡ected in inemployment employment FY 2010 - FY 2017 information about annual maintenance and repairs estimate an years. On average, business andand wages wages and and represented represented a a constructionconstruction of of the the rst rst phase phase of of the the $2 $2 billion billion Cornell Cornell Tech Tech DirectDirect and and Total Total Economic Economic Impact Impact of of Higher Higher Education Education Construction Construction Spending Spending in inNYC NYC campus on Roosevelt Island. Those survey respondents who shared gaingain of of $3.9 $3.9 billion billion over over the the three three average seventeen percent increase in outlays as a result of campus on Roosevelt Island. Those survey respondents who shared revenues rose directly by $2 billion FY 2010-2012 FYFY 2010 2010 - FY - FY 2017 2017Anticipated FY 2013-2017 years. On average, business development that is underway or anticipated. informationinformation about about annual annual maintenance maintenance and and repairs repairs estimate estimate an an per year, in line with the years. On average, business averageaverage seventeen seventeen percent percent increase increase in inoutlays outlays as as a resulta result of of revenuesrevenues rose rose directly directly by by $2 $2 billion billion Direct Effect Total Economic Effect FYMultiplier FY2010-2012 2010-2012Direct Effect Total EconomicAnticipatedAnticipated Effect FY FY2013-2017 2013-2017Multiplier developmentdevelopment that that is isunderway underway or or anticipated. anticipated. institutional expenditures. perper year, year, in inline line with with the the Person-Years of Employment 44,892 63,450DirectDirect Effect Effect TotalTotal 1.41Economic Economic Effect Effect71,183MultiplierMultiplier DirectDirect Effect Effect100,609TotalTotal Economic Economic Effect Effect1.41MultiplierMultiplier institutionalinstitutional expenditures. expenditures. NYU alone anticipates fourteen major construction projects, Person-YearsPerson-Years of Employmentof Employment 44,89244,892 63,45063,450 1.411.41 71,18371,183 100,609100,609 1.411.41 including the $345 million Center for Urban Science and Progress in NYUNYU alone alone anticipates anticipates fourteen fourteen major major construction construction projects, projects, For the scal-year period 2013 Labor Income $3.67B $5.07B 1.38 $5.81B $8.04B 1.38 For the scal-year period 2013 LaborLabor Income Income $3.67B$3.67B $5.07B$5.07B 1.381.38 $5.81B$5.81B $8.04B$8.04B 1.381.38 includingincluding the the $345 $345 million million Center Center for for Urban Urban Science Science and and Progress Progress in in For the scal-year periodValue 2013 Added $3.86B $6.04B 1.57 $6.12B $9.58B 1.57 Downtown Brooklyn. Columbia University also reported a number of DowntownDowntown Brooklyn. Brooklyn. Columbia Columbia University University also also reported reported a numbera number of of through 2017, the Building throughthrough 2017, 2017, the the Building Building ValueValue Added Added $3.86B$3.86B $6.04B$6.04B 1.571.57 $6.12B$6.12B $9.58B$9.58B 1.571.57 major projects led by its ongoing construction of the 450,000 majormajor projects projects led led by by its its ongoing ongoing construction construction of of the the 450,000 450,000 Congress forecasts $9.85 billion CongressCongress forecasts forecasts $9.85 $9.85 billion billionOutput $6.05B OutputOutput$9.24B $6.05B$6.05B 1.53$9.24B$9.24B $9.59B1.531.53 $9.59B$9.59B$14.65B $14.65B$14.65B 1.531.531.53 squaresquare foot foot Jerome Jerome L. L.Greene Greene Science Science Center, Center, which which will will focus focus on on ofof direct direct capital capital investments investments by by FiguresFigures Expressed Expressed in Constant in Constant 2013 2013 Dollars Dollars Sources:Sources: Implan Implan Pro ProModel Model and andUrbanomics Urbanomics square foot Jerome L. Greene Science Center, which will focus on of direct capital investments by Figures Expressed in Constant 2013 Dollars Sources: Implan Pro Model and Urbanomics neuroscienceneuroscience research. research. CUNY CUNY expects expects to to have have eleven eleven di—erent di—erent neuroscience research. CUNY expects to have eleven di—erent projectsprojects in invarious various stages stages of of construction construction throughout throughout its its system, system, projects in various stages of construction throughout its system, includingincluding a $406a $406 million, million, 360,000 360,000 square square foot foot Academic Academic Building Building at at including a $406 million, 360,000 square foot Academic Building at NewNew York York City City College College of of Technology. Technology. DirectDirect and and Total Total Economic Economic Impact Impact DirectDirect and and Total Total Impact Impact of of Higher Higher Education Education ofof Higher Higher Education Education Construction Construction Starts Starts in inNYC NYC ConstructionConstruction Spending Spending on on Total Total Output Output in inNYC NYC New York City College of Technology. OtherOther major major players players include include Fordham Fordham University, University, which which reported reported Direct and Total Economic ImpactSYSY 2008-09 2008-09 - SY - SY 2012-13 2012-13 Direct and Total Impact ofFYFY 2013Higher 2013 - FY - FY Education2017 2017 threethree major major projects projects with with a combineda combined value value of of $425 $425 million, million, and and of Higher Education Construction $7.0Starts$7.0 in NYC Construction Spending on Total Output in NYC Other major players include Fordham University, which reported SY 2008-09 - SY 2012-13 $3.5FY$3.5 2013 - FY 2017 $6.0$6.0 three major projects with a combined value of $425 million, and $7.0 $3.0$3.0 $5.0$5.0 $3.5 $2.5$2.5 $6.0 $4.0$4.0 $3.0 $2.0$2.0 $3.0$3.0 $5.0 $1.5$1.5 IN $ BILLIONS IN $ BILLIONS $2.5 IN $ BILLIONS $2.0$2.0 IN $ BILLIONS $4.0 $1.0$1.0 $1.0$1.0 $2.0 $0.5$0.5 $3.0 $0.0$0.0 $1.5 IN $ BILLIONS LaborLabor Gross Gross City City Business Business $0.0$0.0 2013 2013 20142014 20152015 2016 2016 2017 2017 $2.0 Income Income ProductProduct Sales SalesIN $ BILLIONS ◆ ◆Induced Induced Effect Effect ◆ ◆Indirect Indirect Effect Effect ◆ ◆Direct Direct Effect Effect $1.0 ◆ ◆Direct Direct Effect Effect ◆ ◆Total Total Economic Economic Effect Effect $1.0 Sources:Sources: Implan Implan Pro ProModel Model and and Urbanomics Urbanomics Sources:Sources: Implan Implan Pro ProModel Model and and Urbanomics Urbanomics $0.5 $0.0 Labor 2 GrossEconomic2 Economic impactCity impact simulations simulations in this in this Businessreport report were were run runin the in theImplan Implan Pro ProModel, Model, an econometrican econometric inter-industry inter-industry model $0.0model calibrated calibrated on theon theNew New York York City City economy economy in 2011 in 2011 by MIG, by MIG, Inc. Inc.The The model model is a iswidely a widely accepted accepted tool tool for estimatingfor estimating indirect indirect and and induced induced effects effects of direct expenditures, price changes, or policy actions. Income of directProduct expenditures, price changes, or Salespolicy actions. 2013 2014 2015 2016 2017

◆ Induced Effect ◆ Indirect6 6 Effect ◆ Direct Effect ◆ Direct Effect ◆ Total Economic Effect Sources: Implan Pro Model and Urbanomics Sources: Implan Pro Model and Urbanomics

2 Economic impact simulations in this report were run in the Implan ProSource: Model, New an econometric York Building inter-industry Congress model calibrated on the New York City economy in 2011 by MIG, Inc. The model is a widely accepted tool for estimating indirect and induced effects of direct expenditures, price changes, or policy actions.

3 6 MetroGrid Report | New York City’s Colleges and Universities FOCUS ON NYC SUBMARKETS Real estate investment services

The Ultimate College Town | Select Projects in Construction

Columbia University Manhattanville Campus Expansion

Rockefeller University Campus Expansion

Barnard College Center for Teaching and Learning

Cornell Tech Campus

NYU Center for Urban Science & Progress (CUSP)

NYU Washington Square Park Campus

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