Reduced building time makes modular construction appealing to many developers.
Modular construction was once a cheap solution for properties in lower-priced areas. That has slowly changed over the last several years as some of the biggest companies in the burgeoning proptech and construction tech spaces have focused on modular and prefab builds. Modular construction is now used in a variety of high-end commercial real estate projects. In fact, the modular construction market is projected to reach as high as $157 billion by 2023.
New York City is quickly becoming a home for some of the most ambitious modular hotels in the world, including the 168-room, 26-story AC Marriott in Manhattan, which will open in 2020. That hotel and a proposed Hilton Motto in Brooklyn were designed by Danny Forster & Architecture, a firm that also worked on Hudson Yards and other high-profile projects.
Interest in modular construction can be seen around the world. It is currently more popular in Europe than in the United States, but the U.S. is starting to catch up. High-profile tech start-ups like Katerra, which has raised billions from the SoftBank Vision Fund, have helped contribute to growing awareness of modular construction as a way to help builders save both time and money.