New Hamsphire Construction Insights and Analysis October 2024

on New Hampshire Construction Projects

1. Multifamily-Residential Projects: Addressing Housing Demand in Urban and Suburban Areas

The surge in multifamily-residential projects in New Hampshire underscores the growing demand for housing, driven by urban migration, increasing population, and the need for affordable living spaces. Several projects, particularly from PROCON and Milestone Construction Services, highlight the strategic importance of this sector in the state’s urban development.

• 135-Unit Apartment Complex (Somersworth, NH) – Large
  Managed by PROCON, this large-scale multifamily-residential project reflects the region’s response to housing shortages. As urban populations grow, especially in cities like Somersworth, there is an increasing need for affordable and diverse housing options. Projects like this cater to middle-income residents, driving further urban development.
• The Rapids On Cocheco (Rochester, NH) – Medium
  This medium-sized project by Milestone Construction Services showcases a trend towards smaller, but strategically located residential developments. Rochester’s growing demand for housing suggests opportunities for developers to focus on mid-sized apartment complexes, which can offer competitive pricing while maintaining quality.
• 22 Green Street Apartments (Somersworth, NH) – Large
  Another large multifamily-residential project from PROCON in Somersworth reflects the city’s growth potential. With multiple residential projects underway, developers are positioning themselves to meet the anticipated demand for housing, which is likely driven by both population growth and the influx of businesses to the region.
• Alta Oak & Pine in Londonderry (Londonderry, NH) – Extra Large
  This Wood Partners project indicates a significant investment in the state’s housing infrastructure. The extra-large scale suggests that Londonderry is an emerging residential hub, potentially attracting families and professionals seeking suburban living while maintaining proximity to business centers like Boston.

2. Corporate and Mixed-Use Developments: Expanding Business Infrastructure

• NECU – Dover (Portsmouth, NH) – 100,000 sq ft, Medium
  This corporate project by PROCON reflects a broader trend of businesses expanding their footprints in New Hampshire. With Portsmouth serving as a strategic business location, investments in corporate infrastructure like this demonstrate the growing confidence in the region’s economic potential. The demand for business spaces is expected to rise as companies expand their operations in secondary cities to take advantage of lower costs and talent pools outside traditional hubs.
• Duprey Hospitality’s Arts Alley (Concord, NH) – 5,000 sq ft, Small
  A small-scale, yet strategic project by PROCON, the Arts Alley focuses on enhancing cultural and hospitality spaces within Concord. This reflects the growing trend of integrating arts and culture into urban developments, positioning Concord as a vibrant city for both residents and tourists. Small projects like this contribute to a city’s appeal, increasing tourism and boosting local businesses.

3. Education Sector: Upgrading School Infrastructure

• Pinkerton Academy (Derry, NH) – 32,000 sq ft, Medium
  This medium-sized project by Eckman Construction represents the ongoing investments in educational infrastructure. Pinkerton Academy, one of the largest independent high schools in the U.S., plays a key role in Derry’s education landscape. Upgrading its infrastructure is critical to supporting growing student populations and maintaining the academy’s reputation. This project reflects the broader trend of modernizing educational facilities across the state, as schools seek to improve learning environments and adapt to new technologies.

4. Strategic Regional Growth Opportunities

New Hampshire’s construction landscape presents diverse opportunities for growth across several sectors, particularly in multifamily-residential, corporate, and education developments. The strategic location of these projects highlights several growth hubs:

• Somersworth and Rochester are emerging as key areas for residential development, supported by multiple large-scale multifamily projects. These cities provide affordable alternatives to more expensive regions in New England, appealing to young professionals, families, and retirees alike.
• Londonderry appears poised for significant residential growth, as evidenced by the Alta Oak & Pine project. With its proximity to Boston and Manchester, Londonderry is positioned to capture demand from both urban commuters and those seeking more suburban or rural lifestyles.
• Portsmouth and Concord are showing promising corporate and cultural development, supported by the NECU – Dover and Duprey Hospitality’s Arts Alley projects. These projects signal an ongoing effort to strengthen the business and hospitality infrastructure in these cities, making them attractive for corporate expansion and tourism.

5. Key Market Players and Strategic Positioning

• PROCON is a dominant player in the New Hampshire construction landscape, particularly in the multifamily-residential and corporate sectors. Their involvement in large-scale residential projects like the 135-Unit Apartment Complex and 22 Green Street Apartments in Somersworth, as well as corporate projects like NECU – Dover, positions them as a leader in shaping urban and suburban growth in the state.
• Milestone Construction Services is also capitalizing on the demand for residential development with projects like The Rapids On Cocheco in Rochester. Their focus on medium-sized projects allows them to target a specific niche in the residential market, where they can offer more affordable and efficiently built housing solutions.
• Wood Partners is leveraging Londonderry’s growth potential with the Alta Oak & Pine project, signaling their commitment to large-scale residential developments. Their presence in this area indicates an understanding of the suburban expansion trends and the demand for high-quality residential communities.

6. Sector-Specific Opportunities

• Multifamily-Residential: With increasing demand for housing in urban and suburban areas, there are significant opportunities for developers to expand in cities like Somersworth, Rochester, and Londonderry. These areas present favorable conditions for mid-to-large-scale residential projects aimed at accommodating growing populations and shifting demographics.
• Corporate: Portsmouth’s business-friendly environment and its proximity to key metropolitan areas like Boston offer significant opportunities for corporate infrastructure projects. With developments like NECU – Dover, there is potential for further expansion in business spaces, as companies look for cost-effective alternatives to traditional business hubs.
• Education: The focus on upgrading educational institutions like Pinkerton Academy reflects broader opportunities in the public and private education sectors. Investment in school infrastructure is likely to continue as the state seeks to improve the quality of education and accommodate growing student populations.

Strategic Implications for Stakeholders

1. For Investors: The multifamily-residential and corporate sectors offer the most immediate growth opportunities. Investors can capitalize on the rising demand for housing and business spaces, particularly in high-growth regions like Somersworth, Rochester, and Londonderry. The state’s proximity to larger metropolitan areas like Boston makes it an attractive location for long-term investment.
2. For Developers: Firms should focus on expanding their portfolios in residential and corporate developments, particularly in emerging markets like Somersworth and Portsmouth. There are also opportunities in the education sector, as schools and universities look to upgrade their infrastructure to meet modern educational needs.
3. For Local Governments: Supporting residential and corporate projects through zoning adjustments, infrastructure improvements, and tax incentives can spur further economic growth. Encouraging development in cities like Rochester and Londonderry can help accommodate population growth and boost local economies.
4. For Suppliers and Subcontractors: The diversity of projects across sectors provides a wide range of opportunities for suppliers and subcontractors. From large multifamily developments to specialized education and corporate projects, there is consistent demand for construction materials and skilled labor.

Conclusion

New Hampshire’s construction market presents a mix of high-potential residential, corporate, and educational projects. Developers like PROCON and Milestone Construction Services are well-positioned to capitalize on the state’s growing demand for housing and business infrastructure. Cities such as Somersworth, Portsmouth, and Londonderry offer strategic opportunities for long-term investment and development, supported by the state’s business-friendly environment and expanding population.