A lot is going on in New York especially and as far as commercial real estate deals are concerned in the city.
Many big, commercial real estate deals have taken place in NYC this year. However, some have been the clear highlight.
Moreover, along with commercial real estate, NYC is also home to many coworking spaces.
In commercial real estate, the biggest sale this year was of Capital View Office Park, which took place near Amtrak train station. The sale took place in Rensselaer and the deal was above $20 million.
Moreover, this is the biggest deal so far and it is about $7 million more than the 2nd largest transaction that took place in NYC.
First things first;
The big 250,000 square foot office park comprises of three former mill buildings and many parking lots. These have already been leased to a state agency.
In other news, some are saying that the ‘sky is falling’ in NYC. In NYC, there is a mismatch going on between weirdness and wealth.
There are certain major predictions for 2018. For instance, it is being said that the US economy will continue to expand this year.
The US economy is about a decade in without a period of recession. In the US, domestic and global GDP will hit new highs of 3% this year and that is another major positive for commercial real estate.
Additionally, some economic stimulus has instigated in economy too this year. For instance, everyone is moving ahead with caution this year but things will change and go towards the negative in the coming year.
Retail bankruptcies are going to slow down this year, they say.
In the last year, there were about 21 major retail bankruptcies including those of Charming Charlie, Payless hhgregg, Toys R US, Rue 21 and others.
Clearly, the office market is also going to remain flat this year. There has also been a large rise in US office products and they are under development at the moment. However, more pressure is going to be added on office fundamentals this year.
Additionally, there’s a 105.7 million SF in new office supply and US office vacancies will rise to 13.3% this year, in the 3rd quarter. Vacancies have also risen to new highs since Q3 to now 2016.
After Amazon’s HQ2, there is also an uproar in the ongoing real estate insider trading this year. For instance, while IKEA is set to open its very first store in Manhattan, the new Amazon HQ will send home prices in Long Island City to new highs.
Furthermore, as far as real estate is concerned, firms are betting big on the Hudson Yards and the new deals. For example, the new real estate investment trust is going to buy a majority stake in the 21 story building.
Moreover, the Long Island City building has become a new and major property investment, thanks to Amazon itself. Demand for property in New York has been great after Amazon’s announcement of its new HQ.
There has also been an influx of many new Chinese prospective investments and investors in China’s neighborhood.
Nonetheless and on the whole, there’s a lot going on in New York and as far as commercial real estate is concerned, there’s a lot to expect in the time ahead. (Image).
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