One Wall Street Serves as Test Case for Other Office Conversions Post-COVID
Built in the 1930s, One Wall Street, once an office building, has been transformed to a mixed use building thanks to rezoning laws. The amenities include AC, a pool, & a 6,500-square-foot private coworking space. Residents get complimentary memberships to Life Time’s 74,000-square-foot fitness center at the base of the building, plus easy access to… Read more »
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 »
Commercial Real Estate Pricing Growth Slows to Pace Not Seen Since 2020
U.S. commercial property price growth slowed in November to an annualized pace not seen for more than two years, according to MSCI Real Assets. The RCA CPPI National All-Property Index rose 4.9% from a year ago and fell 0.4% from October, representing an annualized decline of 4.6%. The industrial index maintained its spot as the… Read more »
What Would It Take to Turn More Offices Into Housing?
There’s about 998 million square feet of office real estate across the United States that’s available but in search of a tenant. That’s thousands of old cubicles, conference rooms, pantries and cafeterias sitting in ghostly quiet. That’s a vast amount of empty space — nearly 13 percent of the market — that could be turned… 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 »
Are Investors Pulling Money Out of REITS
While specific segments of the commercial real estate (CRE) market such as industrial and healthcare are performing well, others like office and retail are alarming investors. Rising interest rates are heightening those concerns. In response, investors are actively reducing their exposure to the CRE market. According to The Wall Street Journal, real estate investment trusts… Read more »
Understanding Different Types of CRE Leases
Leasing occupies its own particular corner of commercial real estate landscape, complete with specialized practitioners who represent tenants and landlords big and small. And while it’s the giant-square-footage commercial property transactions with complex clauses that make the headlines, it’s the smaller leases that make up bread-and-butter negotiations. Regardless of size, however, commercial lease agreements generally… Read more »
Commercial Real Estate Is Slowing Down in Q3 2022
After the strong rebound for the U.S. economy in 2021, growth in 2022 has slowed in the face of rising inflation, the household income squeeze, and geopolitical events. While the economy continues to deal with elevated inflation, data shows a slowdown in the growth of commercial real estate. Demand for apartments and office spaces is… Read more »
The Commercial Real Estate Market: Crash, Train Wreck, Or Apocalypse?
Dire warnings about commercial real estate appear almost daily these days. While office markets are stressed due to increased working from home, some real estate professionals see an increasingly bifurcated market, divided “into haves and have-nots.” Investors, renters, and cities—especially those with older, declining buildings— will need to pay close attention in the coming months… Read more »
REBNY Report Shows New York City Construction Activity Outpacing Year-Over-Year Totals
The Real Estate Board of New York (REBNY), the City’s leading real estate trade association, today released its Quarterly New Building Construction Pipeline Report for Q2 2022. Construction activity in Q2 2022 again outpaced historical averages. Offering good-paying jobs and essential for attracting and retaining investment, employers and residents, this construction activity represents significant progress… Read more »
How warehouses are taking over the U.S.
For every Cyber Monday purchase, there is a warehouse employee packing up those soon-to-be presents. The big online shopping holiday comes amid a warehouse shortage across the United States as distribution center vacancy rates are at all-time lows. Nearly 96% of existing industrial space is in use, according to commercial real estate services company JLL…. Read more »
NYC Commercial Real Estate Brokers Say They’ve Never Been More Confident
Even in light of the slew of existential threats facing the industry, commercial brokers’ confidence is on the rise. The Real Estate Board of New York’s quarterly real estate broker confidence report showed its Current Conditions Index for commercial brokers spiked to hit a record high of 36, up from 20 the quarter before and… Read more »
Forrester: Physical stores to account for 72% of U.S. retail sales in 2024
Physical retail continues to drive the bulk of retail sales — and will for quite some time. Despite all the attention given to e-commerce, 72% of U.S. retail sales will still occur in brick-and-mortar stores in 2024, according to new research from Forrester. Even during pandemic-induced mandatory shutdowns and with additional safety concerns, consumers have… Read more »
Why Commercial Rent Controls Are a Bad Choice for New York City
by Neil A. Dolgin In my last post, Factors Shaping the Future of Commercial Real Estate in NY, I made the point that commercial real estate throughout the city is at risk as the climate for doing business is becoming increasingly difficult. While landlords are trying to recover from mounting losses due to the pandemic… Read more »
Value of NYC Office Buildings Drops by $29B During Pandemic
The pandemic’s impact on New York City’s office market might be worse than anyone thought. The coronavirus erased years of growth in the city’s office sector, and, along with it, $28.6 billion in market value and more than $850 million in property taxes in the city’s 2022 fiscal year, according to a report from New… Read more »