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.
08-Mar-2013 — The MetroGrid Report 1Q13-Upper West Side
By some measures, the Upper West Side would not be considered the “trendiest” neighborhood of late. It does not have the caché of the West Village or Chelsea, nor is it attracting young and hip residents like Williamsburg and the East Village. Yet judging by the interest of real estate investors, the Upper West Side was the hottest neighborhood of 2012. Sales volume of multifamily properties increased three-fold in 2012 over 2011. Total volume in all of Manhattan only increased 3% for the year.
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.
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.
11-Oct-2012 — The MetroGrid Report 2Q12 - Lower Manhattan
More than any other neighborhood in New York City, Lower Manhattan seems to reinvent itself every five years or so. Having endured some of the most tumultuous history of any area in the City – if not the country – Lower Manhattan has figured out how to maximize its real estate assets while attracting interest from investors from around the world. This issue of MetroGrid thoroughly reviews the recent real estate sales in Lower Manhattan and looks into the many developments and changes in the area. Much can be said about the area including how the tenancy of its office users has diversified away from financial services, the residential population has soared and finally, tourists are coming to the area in droves – all of which reinforces why real estate values have climbed in the area in recent years. Given all of the changes and plans underway, Lower Manhattan will likely attract as many as if not more visitors than Times Square does today.
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.”
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.”
25-Apr-2012 — The MetroGrid Report 1Q12 - The Flatiron District
The Flatiron District has earned considerable prominence over the last few years as the City’s true “Tech Hub” given the number of technology firms that have opened in the area including Tumblr and Gilt Group.
The area has long been a popular place to live and work given its broad base of retail and restaurant offerings, its loft-style buildings and its proximity to Madison Square Park, Gramercy Park and Union Square. But its hip reputation has clearly attracted more and more entrepreneurs over the last few years. The anecdotal reports in the media suggest that creative types prefer to set up shop in close proximity to each other, and they eschew the more corporate environments of Downtown and Midtown.
In fact, a recent diagram in the New York Times that mapped 400 technology start-ups showed that the majority were in Midtown South, “within blocks of venture capital investors and veteran start-ups” (such as Google). The area’s lower rents and restaurants and bars were cited as “a big draw.”
15-Dec-2011 — The MetroGrid Report 3Q11-Harlem
The Harlem neo-renaissance story has been frequently aired in the media over the last few years and with good reason: the development and investor interest in this area has been stunning. A number of investors bought land and other properties in the early 2000s believing that this neighborhood had everything that some of the burgeoning Brooklyn neighborhoods had yet with a richer historic and cultural heritage, not to mention better transportation access. Moreover, a number of rezoning plans that were passed over the last 10 years encouraged significant re-development especially along the 125th Street corridor, in East Harlem and surrounding Columbia’s expansion plans in the West 130s.
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.
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.
05-Oct-2011 — The MetroGrid Report 2Q11-Midtown West
While the abundance of development has been widespread across the city over the last 10 years, the concentration of new developments in Midtown West is unparalleled. Developers have built as many as 35 new residential buildings, 14 new office buildings, 30 new hotels, 10 new retail buildings and even a new industrial building. Many of these developers have taken advantage of generous zoning laws that were passed with the Hudson Yards development plan, still others were drawn to the area betting on the promise that the Hudson Yards Plan hopes to deliver. All of this new activity has attracted other investors to the area as sales volume on existing properties has soared for most property types, as have prices. As per Peter Hauspurg, Chairman and CEO, “Few would have believed that this area would be as viable as it has become. To see the residential developments, offices, hotels -- restaurants even -- is remarkable given that so many avoided this neighborhood 10 years ago.”
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.
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.
27-Apr-2011 — The MetroGrid Report 1Q11-Chelsea
Few neighborhoods in Manhattan have undergone as complete a transformation as Chelsea has over the last decade. Starting in the mid 1990s, artists moved to Chelsea from SoHo. Foot traffic increased as did interest in the Meatpacking district and the opening of hip restaurants such as Pastis and high-end retail such as Stella McCartney. More recently, the re-development of the High Line spurred tremendous residential and hotel development in the area, the most notable of which was the Standard Hotel that opened in 2009. Finally, the opening of the Apple Store at West 14th Street and Ninth Avenue cemented the area as a high-end retail destination.
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.
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.
14-Dec-2010 — The MetroGrid Report 4Q10-Upper Manhattan
Garnering the least amount of attention from the broader real estate realm, Upper Manhattan is the quiet market that hums. In fact, during the worst days of the recent financial crisis, property sales in Upper Manhattan did not suffer as heavily as the rest of Manhattan, particularly for multifamily properties. This is not a surprise to the many investors who favor this area for its stable crop of buildings – most with rent regulated units that house residents who remain tenants longer than in more transient neighborhoods. As per Chairman and CEO Peter Hauspurg, “We have a number of clients who focus exclusively on Upper Manhattan due to its dependable stock of properties. We’re starting to see a lot more investor interest in this area as banks prefer to lend on properties with less turnover.”
The analysis below highlights the performance of the property markets in Northern Manhattan, the area north of 135th Street, river to river.
The analysis below highlights the performance of the property markets in Northern Manhattan, the area north of 135th Street, river to river.
05-Oct-2010 — The MetroGrid Report 3Q10-The Village
Few neighborhoods have earned a simpler moniker than “The Village” nor a more recognizable one. Given its legacy as being one of the most desirable places to live, work and go to school; the Village’s commercial real estate market saw prices soar over the last 10 years. Even in 2008 prices barely corrected, although, indeed, volume plummeted. This year, however, transactions have picked up quite a bit while prices have held steady as the analysis herein shows. According to Peter Hauspurg, Chairman and CEO, “Selling a property in the Village is one of our easiest assignments given the investor interest in this area. If one of the traditional real estate families isn’t the highest bidder of a Village property, it is likely that a university or other institution is.”
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.
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.
25-May-2010 — The MetroGrid Report 2Q10-Northwest Brooklyn
It is no secret that Brooklyn enjoyed a real estate renaissance over the last ten years as its commercial property values soared. Although it did not grow on the scale that Manhattan’s market did, the volume of commercial sales tripled in many property classes while prices more than doubled from 2000 to 2007. But like Manhattan, Brooklyn’s market started to correct in late 2008 and has barely come back since.
According to Chairman and CEO Peter Hauspurg, “Everyone wanted to invest in Brooklyn in 2005 through 2007, there were never enough deals for buyers. But the correction hit the borough hard. We’re starting to hear some renewed interest but it is slow going.”
Much has been written about certain pockets of Brooklyn’s commercial real estate market, as some neighborhoods saw considerably more activity in the last decade than others. Even within the neighborhoods, commercial sales by property type differed dramatically. Because so much of Brooklyn’s commercial sales activity was concentrated in the northwest corner of the borough – from Red Hook through Greenpoint – the analysis below focuses on this segment of the borough covering overall activity along with a micro analysis of the property markets delineated by zip code.
According to Chairman and CEO Peter Hauspurg, “Everyone wanted to invest in Brooklyn in 2005 through 2007, there were never enough deals for buyers. But the correction hit the borough hard. We’re starting to hear some renewed interest but it is slow going.”
Much has been written about certain pockets of Brooklyn’s commercial real estate market, as some neighborhoods saw considerably more activity in the last decade than others. Even within the neighborhoods, commercial sales by property type differed dramatically. Because so much of Brooklyn’s commercial sales activity was concentrated in the northwest corner of the borough – from Red Hook through Greenpoint – the analysis below focuses on this segment of the borough covering overall activity along with a micro analysis of the property markets delineated by zip code.
23-Feb-2010 — The MetroGrid Report 1Q10-Midtown East
The Midtown East submarket contains some of the most expensive real estate properties in the world. Buildings along Fifth Avenue to Sutton Place from 34th to 60th Streets house premier retailers, five-star hotels, prime office tenants including most hedge funds and a diversity of residents from around the world.
The commercial sales market analysis profiled below shows that the Midtown East office sales market took a particularly hard hit between 2007 and 2009, but the market for multifamily buildings and even development sites showed less of a correction due to the stability of the neighborhood’s prime occupants: the international community surrounding the United Nations. Not only does the diplomatic community largely prefer to live close to their place of work, but the recent data reveals how foreign governments have been active real estate buyers, even in 2009.
According to Eastern Consolidated’s Chairman and CEO, Peter Hauspurg, “In 30 years of business, I’ve never seen the office market as quiet as it was in 2009, but still, New York remains a strong draw for the international community and no other neighborhood highlights this fact better than the East 40s and 50s.”
The commercial sales market analysis profiled below shows that the Midtown East office sales market took a particularly hard hit between 2007 and 2009, but the market for multifamily buildings and even development sites showed less of a correction due to the stability of the neighborhood’s prime occupants: the international community surrounding the United Nations. Not only does the diplomatic community largely prefer to live close to their place of work, but the recent data reveals how foreign governments have been active real estate buyers, even in 2009.
According to Eastern Consolidated’s Chairman and CEO, Peter Hauspurg, “In 30 years of business, I’ve never seen the office market as quiet as it was in 2009, but still, New York remains a strong draw for the international community and no other neighborhood highlights this fact better than the East 40s and 50s.”