Manhattan
Whether you would like to buy or sell, it’s important that you understand the commercial real estate trends in NYC. This will help you determine the best course of action.
The commercial real estate market is different from the residential real estate market that tends to be seasonal. The commercial market remains steady year round in New York only experiencing a slow down around the holiday season. Here’s what’s happening in NYC’s commercial market and what it means to you.
Property prices
Manhattan has a reputation for premium priced properties, however, in recent history, they have been priced lower than usual. This shift has come due to the 1031 tax code that allows people to defer capital gains on real estate if they invest in a new commercial investment in 45 days. It’s important to seek the assistance of CRE advisors when looking for property to invest in so they can easily guide you through tax codes and similar things that require their expertise.
Retail is looking to create customer experiences
Many retail stores are looking for creative ways to engage customers to come back to their stores. This is necessitated by the growing online retail market. The competitive eCommerce market has led to some of the biggest companies to open retail stores all across NYC. These traditional internet companies should be careful when negotiating terms for large retail spaces. It’s important to seek a commercial advisor to help with complex negotiations.
More offices space is coming to Manhattan
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Low capitalization rates
Many Manhattan buildings are being acquired at low capitalization rates. However, as said earlier, there is high demand for commercial property compared to the supply, which is likely to keep the market very active and competitive in the near future.