Many property investment opportunities are opening up in New York City, attracting a new wave of people to the local commercial real estate market. Between market growth and tax breaks, new CRE investors are looking at 2019 as the year to make a big splash.
Investment Opportunities in NYC
Last month, legislation was put into motion that would create even more opportunity zones in NYC in addition to the ones that opened up last year. These opportunity zones are designed to revitalize communities by offering big tax incentives to commercial real estate investors. Amazon’s announcement last year is bringing CRE investors in droves to purchase, renovate, and lease properties ranging from multifamily apartments to storefronts, office space, and new franchises. In Manhattan, retail space saw a drop in value by roughly fifteen percent, even with Google’s purchase of the Chelsea Market. NYC is also trying to push through incentives to breathe new life into Manhattan’s abandoned storefronts. Brooklyn and Queens are re-zoning some formerly residential properties as commercial, opening up even more investment opportunities to the new wave of commercial real estate professionals and developers.
Financing NYC Properties in the New Era
Despite all of these opportunities, new tax incentives, and re-zoning, banks and other traditional lending channels are still taking the same approach to financing. Prohibitively high loan requirements, long processing times, and low approval rates are still in place, which could hinder many new commercial real estate investors from making headway in 2019. The new wave of CRE investors should not be discouraged by traditional lenders. Banks understand banking, not NYC property markets. Commercial real estate investors need a financial partner who understands the opportunities opening up in New York City, and can arrange financing quickly and efficiently so those opportunities aren’t missed. Bridge loans, construction loans, and more fall outside the wheelhouse of traditional lenders, and they are vital for successful commercial real estate projects in NYC. Investors need to be able to acquire, renovate, and develop properties quickly in order to start generating revenue.
Express Commercial Financing specializes in solutions for NYC commercial real estate investors. Whether you are purchasing your first investment property or taking on a large construction project, our team will work with you to provide the funding you need. Contact our offices today to get started.