According to the latest study from Ariel Property Advisors, the dollar volume of commercial real estate deals is up about 28% year to date over the same period in 2017. Additionally, 4 of the 5 boroughs are showing price increases in multi-family. Manhattan was up 16% price per unit versus last year. Only Brooklyn’s price per unit decreased.
This is consistent with what I am seeing which is continued foot traffic at my exclusives which include a 12 unit near Madison avenue in Central Harlem for $5.7 million and a 4500 sqft SRO in Mount Morris. Additionally, there is plenty of interest in 20-40 unit buildings Uptown with little inventory.
Commercial Observer coverage
The Author- Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.
After spending $6 million to renovate the Soho space at 131 Greene street, they put it on the sublease market asking $2.25 million per year. This was supposed to be the first of Google’s retail locations and to compete with Apple which has a well established network of stores. Just one week ago, Microsoft opened their first New York City store on Fifth avenue just 6 blocks from the Apple store.
From 2013-14, Bank of China was involved with $4.73 billion in top loans for prominent NYC properties according to the Commercial Observer. Now with the decrease in value of the Yuan and Chinese economy reeling how will that affect available capital for large NYC projects? Several heavy hitters including SL Green have relied on loans from Bank of China. Will refinancing these loans be difficult due to a drying up of Chinese lenders?
According to commercial brokerage Cushman & Wakefield between 2009 and 2015, 500,000 jobs have been added in New York. The added jobs is having an impact on Millenials whose preferences are exerting an influence both in NYC and other states across the US.
Millenials who are born between 1984 and 2000 in general want to live in cities and walk and not use cars. As a result, many large companies including Google have relocated to NYC. In addition, in other markets outside of NYC, millenials are making up a large portion of the buying population. Due to the high prices in Manhattan, we don’t see as much millenials buying as in other states.
Based on the pace of the first quarter sales of commercial and mixed use buildings, this market is poised to surpass significantly the $57.7 Billion in sales of 2014.
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According to an article in the Commercial Observer, several factors are contributing to the steady flow of French investment in the NYC Market. Continue reading French investment continues full force in NYC market →
One Vanderbilt, a proposed 1450 foot tall office tower is at the center of the proposed Midtown east rezoning. The building if approved will be devloped by SL Green and will bring $210mm much needed infrastructure improvements to the area in exchange for being allowed to build twice the as of right height. Continue reading One Vanderbilt at the center of proposed Midtown East rezoning →
The Trump Soho Hotel which was built at a time when the zoning in the area didn’t allow full time residential on the site is currently deciding if it will convert the unsold apartments to hotel rooms. The project allows buyers to use their apartments for 120 days a year and then the hotel rents it out for them the rest of the year. Donald Trump and his organization… Continue reading Trump Soho may convert to Hotel →