Welcome to the newest New York Real Estate Update from Brooklyn Made.
This month’s roundup shows an ongoing NYC building boom, with skyscrapers reaching even higher. In the background, the rent control regulation debate is still sizzling hot and could have a sizable impact on the future of commercial real estate throughout New York’s boroughs. Yet, billions are still being plowed into the real estate investment market, and a nonstop chain of towers are still filing for permits, breaking ground and opening up sales.
While there are still potential cracks and flaws in the property market, which could be opened by new regulations, most of the talk of a downturn appears to have subsided, with public opinion and transactions seeming to show new confidence in this strong market as the status quo for the foreseeable future.
Keep listening to get the scoop on all of this, the most notable news this month and what it means for landlords and investors.
In the commercial real estate headlines…
NYC land prices continue to rise. While condo sales, retail, and Manhattan, in particular, continue to find their footing, land in Brooklyn has been trading at 6.5% more than in 2018, at $278 per buildable square foot.
Laguardia airport’s new concourse is set to open this fall. Delta has already invested $4B in the project. 7 of the new gates will open later this year, with a total of 37 planned.
Last month we reported on Google’s continued high-level investment in NYC. This month is it Facebook making moves. The social networking giant who is working on its own digital currency is reportedly looking to ink a new lease a Hudson Yards. Once closed Amazon may be the only tech giant now really missing out on the new surge in expanding here.
The billionaires at One57 are getting some new neighbors, and not everyone is happy about it. A new homeless shelter right behind the famous building which has been setting sales records and sits on Billionaire’s Row. The shelter is to be located in the old Park Savoy hotel, and is expected to house at least 140 people.
The old Hells Angels clubhouse in the East Village is getting new residents too. A new $10M flip is preparing a conversion into condos which will rent from $3,500 a month.
Of course, the big news of the month is the new The Housing Stability and Tenant Protection Act of 2019. These new harsh and sweeping rent controls threaten to severely hamper landlords’ ability to raise rents. Even when units become vacant or are given substantial makeovers. Obviously, landlords groups are fighting to sue back. If they are unsuccessful, some worry the new rules will turn off lenders and financial conduits who won’t want to take the collateral.
This year also marks the first ever Central Park squirrel census, which counted over 3,000 of these furry friends living in the heart of NYC.
If you’re still commuting and doing business in the city Google Maps’ latest updates hope to help you predict just how crowded your bus or subway ride will be.
Fannie Mae says there is still no lack of demand for housing in the US, and that a tightening of lending is designed to help reduce that demand in order to better match the tight supply of available housing to buy. This appears to especially be a challenge for first time home buyer.
New data forecasts a continued shortfall of almost half a million new homes to keep up with demand each year. Especially for lower end priced units. Zillow’s director of economic research says that we’ll have to get used to paying out an even greater share of our income for housing.
Even inf the industrial sector, there appears to be no lack of demand. According to JLL research
“Global industrial close-ended fundraising has tallied a five year average of $94.4B, nearly double the 2004-2013 average of $49.7B. Global annualized average oversubscription for industrial-focused close-ended funds was $16.3B 2013-2018, with U.S.-based industrial funds tallying a annualized average of $10.2B oversubscription in the same period.”
For Brooklyn Real Estate News
In an effort to cut greenhouse gas emissions by 20%, Park Slope is planning 6 new curbside electric vehicle charging stations. Each will be able to charge two vehicles at a time. An initiative that will perhaps finally help more locals find it viable to switch to cleaner rides.
Sadly, Brooklyn borough’s president has warned of ongoing title deed schemes and fraud that have been plaguing the area and forcing long term owners from their homes. A great reminder to get title insurance and always retain a reputable real estate attorney.
Governor Cuomo just attended the groundbreaking of a new apartment complex in downtown Brooklyn. The 129 Nevins Street Apartments are a $72M redevelopment and new 10 story tower aimed at housing low income residents, the formerly homeless, and those with mental health and substance abuse challenges.
Before the summer is over, make sure you grab a blanket and head out to one of Brooklyn’s outdoor movie venues. Films will be playing at Prospect Park, Fort Greene, Narrows Botanical Gardens, Brooklyn Bridge Park and McCarren Park.
In other boroughs
In Manhattan, two 432 Park Avenue condos just sold for $61M. Though it’s worth noting that penthouse #94 sold for almost a $10M discount from the listing price, or 25% under what was being asked.
Two developers turned their eyes to the Bronx last month, partnering up on a $76M deal to convert 400 units back to affordable housing.
JP Morgan has officially pulled permits for its new building. Though has dramatically downside the final height to just 1,322 feet, taking it out of the running for the tallest building in the city by roof height. All while 350 Park Avenue building plans have been unveiled for a new 1,500 foot supertall.
This month’s New York real estate news roundup is positive overall. In spite of rising inventory levels in luxury condominiums and retail spaces, and some defaults, the demand from residential tenants and major firms appears to be there. World class developers, architects and innovators continue unveiling progressive new buildings and communities. If you have the right product, in the right place, at the right price, and it is marketed well, investors can still expect great successes.
Well, that’s it for this month’s round up. Look out for our other upcoming reports, and check out the latest data on the Manhattan and Brooklyn residential and multi-family market, and which features and neighborhoods are yielding the best rents at NewYorkMarketReports.com.
Make sure you like and share this report, and leave your comments on this news, or any trends you think we overlooked or you want to hear more about in the comments section.