7 Things You Need To Know About Commercial Realty in NYC

By in Office Space NYC

Commercial Realty In NYC

Whether you would like to buy or sell, it’s important that you understand the commercial realty trends in NYC. This will help you determine the best course of action.

The commercial realty market is different from the residential real estate market that tends to be seasonal. The commercial market remains steady year round in New York only experiencing a slow down around the holiday season. Here’s what’s happening in NYC’s commercial reality market and what it means to you.

Property prices

Manhattan has a reputation for premium priced properties, however, in recent history, they have been priced lower than usual. This shift has come due to the 1031 tax code that allows people to defer capital gains on real estate if they invest in a new commercial investment in 45 days. It’s important to seek the assistance of reality advisors when looking for property to invest in so they can easily guide you through tax codes and similar things that require their expertise.

Shoppers are getting savvy

There are still some challenges that come between the acceptance and signing of the contract between buyers and sellers. Most buyers these days are doing their homework and researching before signing a contract. Since there is no building that is perfect, it’s important to figure out everything that is wrong with the property before you make a final decision. This is a key part of the process that is often overlooked during the honeymoon phase of finding an office space.

Commercial Realty NYCRetail is looking to create customer experiences

Many retail stores are looking for creative ways to engage customers to come back to their stores. This is necessitated by the growing online retail market. The competitive eCommerce market has led to some of the biggest companies to open retail stores all across NYC. These traditional internet companies should be careful when negotiating terms for large retail spaces. It’s important to seek commercial realty brokers to help with things like negotiations.

Interest rates

The Federal Reserve has announced that they will be raising interest rates by a quarter of a percentage point. The Treasury has also moved up more than 50 basis points since the presidential election. It now hovers around 2.5% above the rate hike.

The new rates can provide an incentive for both lenders and borrowers who might become more cautious. The higher interests also show that the economy is doing well and is an overall positive sign for NYC real estate markets.

More offices space is coming to Manhattan

The office space market is growing in Manhattan. The vacancy rate has gone below 15%. Most of the upward trend is seen in the high-end and Midtown markets. However, the downtown market has seen rising vacancies with negative absorption and falling rent prices. If you plan to buy an investment property, commercial realty partners can help you locate the best location for your property. Just ensure that you pick a commercial real estate broker that has deep connections in the market.

Low capitalization rates

Many Manhattan buildings are being acquired at low capitalization rates. This analysis by commercial realty associates may be dampened if the interest rates continue to go up. However, as said earlier, there is high demand for commercial property compared to the supply, which is likely to keep the market very active and competitive in the near future.

Office Space NYCSpaces

 Spaces Commercial Real Estate helps businesses in NYC find and secure great space. Whether you’re one person running the show or have a cast of characters to do your bidding we’ll help you find the right space and at the right price! Click below for more information.

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Jack Cohen

Jack Cohen has over 22 years of industry experience developing and implementing real estate strategies for clients in Manhattan and throughout the United States. Prior to founding Spaces Commercial Real Estate, Jack was a Managing Director at Colliers International for 3 years and a Director at Cushman & Wakefield for 9 years. Jack’s forward thinking has engineered some of Manhattan’s most unique and difficult deals including the repositioning and leasing of 636 11th Avenue, a 564,000 RSF warehouse to office conversion, which was awarded real estates highest honor- REBNY’s Henry Hart Rice Most Ingenious Deal of the Year Award. Jack is a graduate of Rutgers University School of Business where he majored in Economics and Business Management. He is a member of the Real Estate Board of New York, the executive committee of American Israel Public Affairs Committee (AIPAC), and the Board of Education of Keter Torah, his childrens’ school. Jack lives on the Jersey Shore with his wife and three children.