The MetroGrid Report: Focus on NYC Submarkets
Focuses on a different New York City neighborhood in each issue, providing micro-level detail on building sales and development. The report lists comps, demographics including retail sales and daytime employment, and highlights a recent sale of a specific building.
As per Eastern’s chairman and CEO, Peter Hauspurg, “SoHo is a great market because of its unique buildings. They don’t make the iconic cast iron loft buildings like those in SoHo anymore. We have sold four retail properties on Greene Street alone over the last two years. They are extremely desirable, in part because their tenancies are so strong.”
This issue of the MetroGrid Report covering Northern Brooklyn1 provides a thorough analysis of its commercial real estate market. The statistics herein confirm what many have thought for years: the epicenter of New York City has truly shifted east. Brooklyn now attracts a wide demographic of people from young hipsters to families eager to establish roots, from celebrities to college students and even tourists. In fact, many regard parts of Brooklyn as the next Greenwich Village, Chelsea or SoHo.As per Chairman and CEO Peter Hauspurg, “It’s remarkable to see how Brooklyn has evolved over the last decade and even the past two years: Williamsburg, for example, had the highest number of stalled construction sites in 2009 and 2010 and now has a crane on every block.”
The analysis below provides an in-depth overview of the commercial real estate market on the Upper West Side including statistics on sales volume, pricing and top sales in the last year or so. What the data shows is that while Manhattan’s real estate market can be very volatile, investors return to premium yet stable neighborhoods earlier than trendier neighborhoods. As per Chairman and CEO, Peter Hauspurg, “our retail and multifamily deals on the Upper West Side consistently get the biggest responses from investors. In Manhattan, which is already one of the most preferred locations in the world, the Upper West Side stands out as one of the elite markets mainly because of its building stock and its history of being a popular place to live.”
What the findings herein show is that investors value the Upper West Side for its solid residential base and its future upside potential. The area is renowned for its classic pre-war architecture, charming brownstones, desirable public and private schools, abundance of parks, museums, and a wide assortment of cultural institutions. Housing is always in demand on the Upper West Side and developers are eager to build and have, as demonstrated by the more than 7,800 units built since the late 1990s. Finally, while short on offices and hotels, the Upper West Side has added significant new retail over the last few years anchored by Columbus Center on the south end of the submarket and Columbus Square at West 97th through West 100th Streets that brought big box stores to the area in 2010.
According to Peter Hauspurg, Chairman and CEO, “Lower Manhattan continues to amaze me – every time I go there, I notice a new development, major hotel or retail complex. The growth there never seems to slow down, and our buyers’ interest in the area has increased over the last two years.”
With each new development that was proposed, investor interest grew. As the numbers below show, investment sales volume soared in 2005 through 2007 but then stalled in 2008 and 2009. Interest then picked up in 2010 and even more so in 2011 as transaction volume has nearly eclipsed that of 2010, although it has not returned to levels seen in 2007. What is more impressive about Harlem is what is to come: Columbia is expanding its campus by 17 acres and a number of developers have revived their development plans, particularly along 125th Street.
This current edition of the MetroGrid reviews both the sales market and the new developments and shows how this last frontier of Manhattan has stirred so much interest.
In researching the data for this issue of the MetroGrid that covers the commercial property sales market for Chelsea – West 14th Street to West 30th Street west of Avenue of the Americas – we found so many transactions for art galleries and related spaces that we had to separate them as their own property type. And the results show that art-related space in Chelsea indeed carries a premium when compared to most other property types.
The analysis below highlights the performance of the property markets in Northern Manhattan, the area north of 135th Street, river to river.
Because the Village is really comprised of three neighborhoods – Greenwich Village, East Village and West Village – we break down some of the transaction data accordingly. The results reflect the subtle differences between the three neighborhoods.