Blog

Photo Via CNBC

New York city has always had a (relatively) stable real estate market, even during times of turmoil such as 2008. However, there has been an increasing supply of condos in Manhattan from the developer’s side, yet a slow of growth on the buyer’s side. This could partially be due to the increase in condominium prices, which have reached an all time high. According to Douglas Elliman, “the average apartment price in Manhattan hit a record $1.95 million in the fourth quarter of 2015” (1).

Analyst Ron Insana, considers this to be a “dangerous oversupply and slowing demand for the New York City real estate market”. Apartments are sitting idle for roughly 90 days before being sold, the longest time on market since January 2013 (2). The high vacancy rates could either lead the developers and property managers to drive prices down or begin to sell off some of the properties. “If there are discounts at the city’s tallest buildings anytime soon… there is a possibility to make money shorting those entities most exposed to an edifice that is likely about to get wrecked” (2). For Manhattan, the after-shock of a national real-estate crash may be worse than the earthquake that rocked the nation itself (2).

Written by Kylie Keller

(1) CNBC

(2) Profit Confidential

Filed under: Blog by Antonia Watson
No Comments »

New York City Real Estate changes come in two forms: the development of something new and the transformation of something old. What differentiates the New York market from other places is that much of the gentrification that takes place fights the Historical and timeless treasures of the city.

Where the majority of the recent change is seen is in the heart of midtown, more particularly Midtown West. Neighborhoods are being gentrified by the development of high rise buildings, complexes, and the expansion of subways. According to Samtani, the Managing Editor of The Real Deal, the impact is monumental: “It’s been so big and so transformative that it’s shifted the center of gravity in the city from Midtown more toward the West Side” (1). By expanding residential and commercial development as well as transportation hubs, the neighborhood known as Hudson Yards can quickly become a destination and “city center.”

Photo Via Metro US

Central Park South continues to set the standard for the development of luxury residential high rise buildings. The Central Tower is yet another property geared toward foreign buyers and the domestically affluent investors. The street known as “Billionaire’s Row” (57th street), continues to set the tone for the impact on the luxury market (1).

According to The Real Deal’s latest market report, “The average price per square foot for new condo developments in Hell’s Kitchen is up 40.8 percent from 2011” (2). Proving that with popularity and gentrification, come the prices to match.

Written by Kylie Keller

(1) http://www.metro.us/new-york/5-of-nyc-s-most-exciting-real-estate-projects/zsJpco—ZSA1MMLXk8ves/

(2) http://therealdeal.com/2016/03/23/the-week-in-real-estate-market-repots/

Filed under: Blog by Antonia Watson
No Comments »

Until the recent development of the Hudson Yards neighborhood, Hell’s Kitchen has not seen much renovation since Port Authority (the busiest commuter bus terminal in the world) came into existence (1). The expansion of the 7 Line Subway to 10th Avenue and The High Line Park have contributed to the changes in Hells Kitchen, turning the neighborhood into a place to live rather than a industrial or transportation destination.

Adam Kaufman of the New York Times says “the neighborhood, stretching from Eighth Avenue to the Hudson River and roughly from 34th to 59th Streets, has undergone rapid gentrification in recent years. Today, it is better known for interesting restaurants and lively bars” (1). Kaufman says “if you live in Hells Kitchen and find yourself bored, it’s your fault” (1).

“It [the neighborhood] is a compilation of everything… industrial, residential, commercial,” so it’s like getting a taste of everything (1). Another reason people find Hell’s Kitchen so eclectic is the density of theaters and performing artist studios that thrive in the area. In addition, the High Line is expanding further into Hell’s Kitchen, by adding an addition to 42nd street. This will also have a plaza where modern artists can display art installations to the public (2).

Photo Via DNA Info

“It’s like getting a snapshot of the past with the obvious ‘path’ of the future” (1). In the core of Hells Kitchen, the majority of the buildings are 5-7 stories high, so it feels more “residential” and less congested (1). Since the development of the higher rise buildings in the area, the neighborhood has become increasingly popular amongst the younger crowd who can still afford the more reasonable rental and condo prices.

Photo Via Corcoran

Some of the newer developments have attracted some of the luxury price point buyers. On the west side, buildings such as The Orion on 42nd Street have seen a surge in high rise condos. With the close proximity to all subways via the Times Square station at Port Authority, the location is unbeatably convenient.

Written By Kylie Keller

(1) New York Times
(2) DNA Info
(3) Corcoran

Filed under: Blog by Antonia Watson
No Comments »

To be ahead of the curve in New York Real Estate, the buyer must invest in a neighborhood prior to the gentrification and the development of the area.

One of the first places to look is to follow where the developers and the property managers are going. Michelle Higgins of the New York Times writes “buyers who seek the next “it” neighborhood, rough edges and all, would do well to take their cues from developers” (1). The downside to all of this is the developers not having sufficient funds to complete the project, or making a poor decision in a neighborhood that will not develop for a while (or ever).

That being said, Higgins follows up with “a better bet … may be a neighborhood with access to public transportation and real estate values that are rising but still lower than in surrounding areas” (1). Residents who are looking into reasonably priced investments or rents are still looking to keep the “convenience” of their old neighborhoods. Proximity to convenience plays a huge factor when renters look to sign a lease. They desire to be close to transportation, grocery stores, and recreation, even schools.

Photo Via New York Times

Some of the neighborhoods that have recently seen growth include East Harlem, The Rockaways, and Sunset Park West. Lauren Cangiano says she can “see East Harlem as one of the few remaining areas in New York City where you can secure a good deal” (1). New luxury apartments have started to develop and new bars and shops have opened up, while still rooted in the “El Barrio” heritage. Another neighborhood worth looking into is The Rockaways. “Katie Long traded a cramped Park Slope rental… for a $480,000 three-bedroom two-bath condominium a block from the ocean. ‘It’s like night and day… We are living like kings” (1).

Sunset Park West is also drawing crowds in to art shows, the Brooklyn Flea, warehouse events, and the new Brooklyn Nets training facility. With more crowds, comes more publicity. With more publicity, comes more interest. And with more interest, comes more investment (2). David Kramer of the Hudson Company jokingly stated, “if it’s a neighborhood that you’ve barely heard of, that’s a good sign” (1). Amy Plitt of Curbed NY writes, “WTF is Sunset Park West? It’s unlikely that the name will stick (2).” Good indicators that the neighborhood is still in the early stages of gentrification and “the rise.”

Written By Kylie Keller

(1) New York Times
(2) Curbed NY

Filed under: Blog by Antonia Watson
No Comments »

The Upper East Side has been a booming market for both renters and buyers alike as the neighborhood becomes more popular among young professionals and young families.

When the Manhattan market expands uptown, more residents move with the flow of trending investments. The past 15 years have seen a large growth in the prices of Upper East Side condos of approximately 119% (1). One of the largest trends seen today are renovated building with unobstructed views of the city as the New York skyline continues to evolve. For example, Corcoran just closed a deal on a renovated apartment with “striking unobstructed views of the cityscape and Chrysler Building” (4).

Photo Via Corcoran

Properties are becoming available for future residents to customize and make for themselves. There have become condos and townhouses alike to build from the ground up. One of the main appeals to new buyers are the unique features that properties have to offer, like the lot on 73rd street that has indoor court and curbside capabilities. (3).

Prospective residents are not only relocating from apartments within Manhattan, but also from suburbs within and outside of the tri state area. One couple who moved from Virginia invested in a place on the Upper East Side, not only for rate of return purposes, but also because But “at the end of the day, it’s the emotion that just hits you the right way” (2). Buyers turn to the Upper East Side because of the residential feel that it provides: the accessibility to good education, the proximity to Central Park, and that classic New York feel.

Written By Kylie Keller

(1) NY Curbed
(2) NY Times
(3) NY Post
(4) Watson International Realty

Filed under: Blog by Antonia Watson
No Comments »

As people are turning to Manhattan as a market for investments, landlords are considering the conversion of their rental properties to condominiums. This gives the landlord the opportunity to cash in on the asset and for the prospective buyer to consider an investment in the real estate market (2).
Both current rentals and commercial property landlords are looking into condo conversion. In Gramercy, Cabrini Medical Center, a hospital that has been vacant since 2008, is now being converted into pre-war condos. These are said to be finished by end of year, complete with luxury amenities including a pool and private terraces (3). Other places around the area include the former Lying-In Hospital, a maternity ward on Second Avenue, which has morphed into Rutherford Place, a rental-turning-condominium” (3).

Photo via The New York Times

The first step to the conversion is to submit pricing applications to see if this is a project to further pursue (1). However, Starr Associates Attorney Shaun Pappas states that “testing the market was historically frowned upon because it’s non-binding, and you’re stirring up a pot when you’re not necessarily planning on moving forward with it” (1). So, unless the landlord is ready to commit, there could be the possibility of a lawsuit. Ronda Kaysen of the New York Times suggests that “the simplest route to owning a home might be to find one already for sale, make an offer and buy it” (2).

Written By Kylie Keller

(1) The Real Deal
(2) The New York Times
(3) The New York Times

Filed under: Blog by Antonia Watson
No Comments »

It is evident that Hudson Yards has seen recent developments: especially in the commercial residential sector. However, behind the reasoning of the subway expansion and gentrification lies the development for more retail space. In an interview with Bloomberg, Stephen Ross states that the Hudson Yards is looking to be the next city center (1) .

The recent transparency in New York City real estate stems from the Treasury’s interest in unveiling both commercial and residential buyers. Stephen Ross in a Bloomberg interview states they (the Treasury) “were trying to track money laundering” (1). Because of the high moderation, more regulated industries like real estate, law and finance are more inclined to relocate their company. Hudson Years offers those companies the technology and the modern, renovated advantages that this generation seeks out.

Hudson Yards is also developing retail space to match the commercial property. The development of restaurants (including one by the famous Thomas Keller), a Neiman Marcus, and an observation deck attract more than just the 9-5 commuters(2). Hudson Yards is becoming an attractive destination (and possibly residential) neighborhood.

Ross continues in the interview saying that “New York is becoming more of a technology city and it a place where people (millennials) want to be…. This will become the new ‘heart of New York’ “ (1). Since our culture is focused on the new and the now, the city is evolving to fit that need and fill that void through its commercial properties.

Photo Via Hudson Yards

The Hudson Yards development already has their own website, with the running theme “#BeInTheNext” (2). This encourages not only residents but also companies to be ahead of the trend, or on trend with the latest and greatest thing. It is playing into our generation’s mentality and contributing to our ever-evolving city.

Written by Kylie Keller

(1) Bloomberg

(2) Hudson Yards

Filed under: Blog by Antonia Watson
No Comments »

Most of the buyers in Manhattan are all cash buyers from foreign countries. Midtown Manhattan, the Plaza Region, and 57th street (one of the most popular streets recently coined “billionaires row”) caters specifically to foreign buyers. Last year alone, “foreign buyers spent more than $87 billion on U.S. properties”(4). The tallest residential building in the Western Hemisphere, has a landing page that prompts the prospective buyer to choose a language among seven choices.

Photo via 432 Park Ave

Louise Story of the New York Times states that the government will now start regulating and keeping track of the foreign buyers of high end properties to avoid the use of “dirty money” in the real estate market. The goal is to increase transparency in the transactions; and to reveal the shell companies that are involved in purchasing those high-end properties. Over half the homes that are purchased in Manhattan worth over $5 million dollars are purchased using shell companies (2).

In 2015, the prominent investors were from China, but since the slow of the Chinese economy the past couple of months, real estate developers are looking elsewhere for their investors (3). Since the price of oil has dropped significantly from 2014, the majority of oil investors are turning to Manhattan’s luxury commercial real estate market for an alternative investment. Many investors now come from Russia, Norway, and in many countries from the Middle East (4). “Investors are now focused on multifamily buildings, office condominiums and mixed-use buildings as long-term investments” (4).

Photo Via Corcoran

Since 2008, Real Estate has become one of the most regulated industries in the United States. Properties have increasingly become commodities not just for living, but for capital gain. Manhattan has always been the most saught-out and competitive markets for both domestic and foreign investors; and it will continue to be one of the prominent markets as developers seek investors.

Written by Kylie Keller

(1) 432 Park Avenue
(2) New York Times
(3) The Real Deal: Chinese Investors
(4) The Real Deal: Buyers from Oil-Rich Nations

Filed under: Blog by Antonia Watson
No Comments »

The popularity of the luxury condominium has grown increasingly since last year, especially with foreign buyers (who, according to Citi Habitats, make up 40% of the buyers) (2). Most will purchase the condo as an investment, with the sole intention of renting it out to others in Manhattan.

The turnaround time for luxury condos has increased. The overall days on the market for condos has decreased year-to-year to 84 days, from 100 days in 2014; and the number of sales have also increased (4). According to the Corcoran Q4 Market Report, the luxury market sale prices were up 2%, with the majority of sales focused below the 34th street region (4).

Since the supply of luxury condos has increased, there has been decrease in the price of these luxury rentals (1). In order to be more competitive in the market, the owners who rent out these apartments must provide an enticing price. The average decline in rental prices in the past quarter was between 1.3%-3.4% (2). This slight decline is evidence of a competitive market. However, there was an average year-to-year increase of 6.7% for a studio apartment and a 0.4% for a three bedroom (2).

Photo Via Corcoran

New Yorkers are finding it more difficult to afford rent; and have reached their “upper limits of what they’re able to pay after more than four years of almost continuous rent growth” (3). According to Jonathan Miller in an interview with Bloomberg, rent prices are rising in both Manhattan and Brooklyn due to “robust local economy and tight credit conditions on mortgages” (3). There are a low amount of first time buyers and smaller subset of people who are active in the market (3).

Miller predicts that the Federal rate hike will not be a significant impact on the housing market because the majority of the buyers in Manhattan are cash-buyers. On the other hand, there needs to be a change from the current renting conditions. Cities will not be able to flourish properly if there is an increase in jobs but no availability to rent because of the spike in rent prices. 2016 will see that the pace of growth of rent prices is slowing but not stopping.

Written by Kylie Keller

(1) DNAinfo: New York
(2) CitiHabitats
(3) Bloomberg
(4) Corcoran

Filed under: Blog, Uncategorized by Antonia Watson
No Comments »

Up until 2014, upon the completion of the Freedom Tower (also known as the World Trade Center), the Financial District was simply that: The Financial District. It is a place where small firms and large corporations alike would lease office space during the week. And on weekends? One would be hard-pressed to find a local grocery store, let alone an on-trend restaurant.

Although financial institutions dominate the majority of lease rentals in the Financial District, there has been a surge of larger, more creative type of corporations. The Conde Nast offices (encompassing Vogue, Architectural Digest, and the like) have moved to One World Trade Center at Brookfield Place, the heart of the gentrified financial district (1). This has given rise to what many call the reinvention of the neighborhood.

Photo Via New York Times

With the start of 2016, the evolution of the Financial District over the past few years is evident; and future construction in well under way. The new World Trade Center gave way to further ease of transportation for commuters. The WTC Path Train Station’s renovation and accessible underground pedestrian walkways make the Freedom Tower a commute destination rather than an office building.

Nearby, the Fulton street station has also been newly renovated, servicing “up to 300,000 passengers a day” through its nine subway lines (2). Both the WTC walkways and the Fulton Street station (coined a “Crystal Palace” by Vivian Yee of the New York Times) have a central focus on aesthetics (2). This creates more “natural” foot traffic, making transportation stations a hub and destination.

Photo Via Corcoran

The Financial District has become increasingly “residential” as more amenities advantageous to young professionals and families are becoming popular. Whole Foods, which has recently opened in TriBeCa, may be coming to Wall Street. This will compete with the Eataly opening at 4 World Trade Center and the already popular Le District at Brookfield Place (3). On trend hotels with world class restaurants and bars are developing: the Beekman Hotel is expected to open in May and “… is an ideal location that offers a singularly fresh experience that’s sustainable over time, such as being a block away from Fulton Center and two-and-a-half blocks away from the World Trade Center’s Class A office space” (4). As the neighborhood itself expands, it creates the need for gentrification and the rise of the new.

Written by Kylie Keller

(1) Forbes
(2) NY Times
(3) Crains New York
(4) New York Post

Filed under: Blog by Antonia Watson
No Comments »