This Season In Commercial Real Estate
From The Desk Of Neil A. Dolgin Over the last 50 years New York has gone through many roller coaster rides. New York has always been able to bounce back from a recession, when the rest of the nation was still tied up. I believe we are seeing a market that we have never seen… Read more »
How new grocery delivery apps are impacting New York’s real estate market
New quick-commerce grocery delivery companies sweeping New York City have several things in common: they’re all app-based, their couriers primarily travel on electric bicycles and scooters, and their goal is to get customers their groceries within 20 minutes. The speed of delivery is the backbone of their business model, and they accomplish it with “dark… Read more »
Why Eric Adams’ Zoning Changes Are Vital For A Post-Pandemic New York
New York Mayor Eric Adams has come forward with significant land use proposals in the past few weeks, all under the rubric of “City of Yes.” Although much of the attention is focused on Adams’ proposals to generate 500,000 new housing units, there is another significant component of City of Yes that has been overlooked:… Read more »
More Turbulence Expected for NYC’s Real Estate Market in 2023
After a less than stellar 2022 for the New York City real estate market, the new year isn’t expected to bring much relief for landlords. An economic slowdown, rising interest rates and remote work will continue to weaken office leasing and are expected to cause the value of real estate sales to drop 15.9 percent… Read more »
What’s in Store for Commercial Real Estate
The 2023 commercial real estate outlook indicates there may be challenges ahead. Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain issues persist, and inflation is near 40-year highs, prompting the Fed to steadily increase interest rates. But there are a few bright spots in the commercial real… Read more »
2023 Commercial Real Estate Outlook
by Neil A. Dolgin The outlook for commercial real estate in 2023 is opportunistic. While we see continued uncertainty and challenges ahead, we also see some unique opportunities. Inflation remains high and interest rates are increasing. Yet the industrial sector remains strong. Retail is growing. And the medical office sector continues to thrive. So how… Read more »
Prologis Predicts Significant Drop in Warehouse Development
Prologis is predicting that U.S. warehouse development starts will drop to a 7-year low, as rent growth exceeds 10%. Starts are already 30% below their peak in Europe and Prologis expects that to continue in the US. The warehouse property owner says the rapid rise in the cost of capital is the culprit and starts… Read more »
Fed’s Rate Hikes Aren’t Bulldozing Commercial Real Estate— Yet
The Federal Reserve’s announcement of another 0.75 percentage point interest rate increase continues the central bank’s grim war with inflation. Higher rates are doing damage across the economy, which has never stabilized after the Covid-19 shock. But commercial real estate, vital to cities’ economic and fiscal well-being, hasn’t taken a big hit—yet. Ever-higher interest rates… Read more »
Commercial Property Prices are Down 13 Percent Due to Higher Interest Rates
The impact of higher interest rates is beginning to take its toll on commercial real estate prices. Commercial property prices have fallen nearly 13 percent so far this year, according to Green Street’s Commercial Property Price Index in October. The Index reports that commercial real estate prices were down 7.3 percent alone in October. The… Read more »
Multifamily, Development, Industrial Trades Push Brooklyn’s Investment Sales To $5.56 Billion
Investment dollars poured into Brooklyn’s commercial real estate market in the first six months of the year, accounting for a quarter of the $22 billion in commercial property sales across New York City in 1H 2022, second only to Manhattan which saw 53% of the city’s dollar volume. The dollar volume in Brooklyn totaled $5.56… Read more »
A radical new ploy to lure Google and other firms to Brooklyn
When apartment landlords have empty units, they lure prospective tenants with cheaper rents and free perks. Office landlords haven’t historically offered such grand concessions to fill vacant square footage — until now. The New York City real-estate developer Rubenstein Partners is willing to offer a nearly 50% discount on rent and more flexible terms than… Read more »
Changes to Supply Chain Will Benefit Commercial Real Estate
Online shopping is now the preferred method for 68% of consumers, which has increased significantly since the beginning of the pandemic. Since the pandemic began, supply chain issues have impacted the eCommerce sector significantly. What does this mean for the commercial real estate industry? Keep reading as we discuss what is causing the changes to… Read more »
Finding Good News in NYC Commercial Real Estate
by Neil A. Dolgin After a strong economic rebound for commercial real estate in 2021, data from the National Association of Realtors (NAR) indicates a slowdown in the growth of commercial real estate in 2022 resulting from the effects of the Covid-19 pandemic, rising inflation, higher interest rates, and geopolitical events that have caused a… Read more »
Lenders favor resi projects in big month for outer-borough loans
Kings County reigned in July as lenders pumped billions into outer-borough real estate projects. The month’s 10 biggest loans totaled $1.8 billion, more than five times June’s total, and about twice as much as last July — closely mirroring a similar rebound in Manhattan. Brooklyn captured seven of the month’s 10 largest commercial loans, while… Read more »
This Time, Corporate Executives Mean Business On The Return To Office
Leaders at major companies across the U.S. want workers back this week, and they mean it this time. Labor Day 2022 is the latest, and starkest, line in the sand drawn yet by corporate executives who think their workers should be spending more time in the office. Companies have been trying to lure workers back… Read more »
Meeting Emissions Mandates in New York’s Buildings, Explained
Building owners are scrambling to meet new rules on greenhouse gas emissions. New York’s congressional candidates do the last-minute primary shuffle. In 2019, the City Council enacted a package of bills to reduce the greenhouse gas emissions that cause climate change, including one bill that became Local Law 97 and set limits for emissions from… Read more »