Real Estate Forefront
Covers all of the emerging developments in the New York City marketplace through a quarterly series of detailed reports.
14-May-2013 — Real Estate Forefront: New York City's Changed Economy Less Dependent On Wall Street
Emerging Developments in the NYC Marketplace, #23
For decades, the leading criticism about New York City’s economy was that it was too dependent on Wall Street. The evidence was painfully obvious: because Wall Street earnings gyrated so much and because investors tended to move with a herd mentality, real estate values soared during the good years as did office rents only to fall in the bad years. Likewise, local tax revenues generated by the industry climbed by as much as $1 billion in a single year only to fall by as much the following wreaking havoc on the City’s budget management efforts.
13-Feb-2013 — The Third Certainty How and Why New York City’s Property Taxes Increase Consistently
Emerging Developments in the NYC Marketplace, #22
Everyone knows the two certainties in life: death and taxes. In New York City, there is a third certainty which is that real property taxes increase every year regardless of market conditions. In fact, from 2009 to 2011 when the market value of all New York City properties declined, property tax collections increased by 17%. The data shows that since 1995 total billable assessed values have increased every year in every borough with the exception of the Bronx that showed a slight decline in 2010. While most would assume that wealthier neighborhoods would be assessed higher taxes, a close look at three neighborhoods shows that there is a wide disparity in property taxes paid within these neighborhoods, and there is no rule as to why some properties are taxed more than others.
12-Jul-2012 — New York City's Retail Renaissance II - Outer Boroughs
Emerging Developments in the NYC Marketplace, #21
July, 2012One of the primary reasons why New York City’s economy survived the recession as well as it did is because the retail industry added jobs steadily from 2009 through 2011. The new residential and retail developments that opened during this period had started construction in 2006 and 2007, before the recession hit. When they opened, most of them were successful despite the downturn in the economy. Why? Tourism played a strong role in this growth across much of New York City. But the more compelling reason was likely because the outer boroughs had been so severely under-retailed that these new stores simply filled pent-up demand.
31-May-2012 — New York City's Retail Renaissance
Emerging Developments in the NYC Marketplace, #20
May, 2012No other industry has contributed more to New York City’s recent recovery than the retail industry. Driven by spending from both tourists and wealthier New Yorkers, Manhattan’s retail sales have doubled over the last decade. Much of this growth has come from new development in the City that added big box retail space, housing and hotels.
22-Mar-2012 — The Downside To Manhattan's New Development
Emerging Developments in the NYC Marketplace, #19
March, 2012The tremendous development in New York City over the last decade has utterly transformed a number of neighborhoods in that more families are staying in the City instead of moving to the suburbs as had been the trend in previous decades. As a result, the population of those under 18 has surged over the last decade. This demographic shift is evident not only in the proliferation of stroller traffic and the change in retail offerings, but in school enrollment and overcrowding.
21-Nov-2011 — Manhattan Multifamily – The Safest Investment Over the Last Ten Years
Emerging Developments in the NYC Marketplace, #18
One unlikely parallel to the instability in the stock market this past quarter was that Manhattan multifamily property sales soared. Third quarter volume climbed to a three-year high in the third quarter to $2.2 billion, from $1.5 billion in the second quarter and a low of $205 million in the first quarter of 2009. In all of 2009, multifamily sales volume was $1.3 billion. While this year’s sales are still far below the 2007 quarterly average of nearly $3 billion a quarter, it is safe to conclude that buyers and lenders believe that the multifamily market has turned the quarter in Manhattan.
13-Jul-2011 — Office Property Report Mid-Year 2011
Emerging Developments in the NYC Marketplace, #17
After lagging the rest of the commercial property sales market in 2010 and the first quarter of 2011, the volume of Manhattan office property sales more than doubled in the second quarter to $5.5 billion.
06-Jun-2011 — If You Build It, They Will Come
Emerging Developments in the NYC Marketplace, #16
While Wall Street was crashing and real estate was imploding from 2007 through 2010, one industry was expanding at a phenomenal rate: New York City’s hospitality industry. Put simply, New York City’s tourism and hotel boom over the last five years is one of the most remarkable success stories in decades mainly because it thrived despite both the national recession and European debt crisis.
08-Mar-2011 — Development Site Sale Prices Return to 2007 High
Emerging Developments in the NYC Marketplace, #15
March, 2011The prices paid for development sites in Manhattan accelerated from the start of the last decade through 2007. Development site prices then plummeted in 2009 as did the volume of transactions. In fact, the 2009 land sales correction was sharper than for nearly every other property type. However, while the volume of transactions improved somewhat in 2010, the average price paid per buildable square foot soared back to its highs of 2007-2008 as did the average transaction size.
08-Dec-2010 — How Public School Test Scores Impact New York City’s Real Estate Values
Emerging Developments in the NYC Marketplace, #14
Anyone who lives in New York City knows that neighborhoods with good elementary schools command higher real estate values. Quantifying this relationship has never been easy, but with the recent abundance of test score data, the impact on real estate prices from higher test scores can be determined and the results are compelling.