In 2019, NYC commercial real estate investors can look for even more opportunities to increase their portfolios and their revenue. Those thinking about entering the commercial real estate arena in New York City to those who have been in the game for years, this upcoming year has a few trends to watch.
Buy to Rent Instead of Flipping
From residential properties to office space, people and businesses are looking to rent instead of own. The second half of 2018 saw fewer purchases and more leases signed. For NYC commercial real estate investors, this means plans for property flipping should go on the back burner. Instead, get your properties ready for tenants. With new plans in action to bring more storefronts back to Manhattan, Opportunity Zones in Brooklyn, and new businesses laying down roots throughout NYC, rental opportunities will be on the rise for local commercial real estate investors.
Our Neighbors to the North
Businesses in Canada are making inroads to lease property in New York City. Whether this is to establish a stateside presence, or simply that vacancies present a financially sound move, our neighbors to the north are coming to NYC. Over the next year, Canadian businesses are looking to lease office space. NYC commercial real estate investors should be taking the time to research price points which will attract Canadian tenants and bring in more revenue with long-term business leases in 2019 and 2020.
Amazon in NYC
The buzz surrounding Amazon’s campus in NYC is dying down, but that’s because savvy commercial real estate investors are putting plans in motion. The campus will bring new demands for business space and mid to high-end apartments. Securing space or renovating existing properties is now a priority for any investors looking at the long-term payoff of having Amazon in New York City.
Traditional Financing Outlook is Uncertain
Despite all of the upcoming opportunities for NYC commercial real estate investors, traditional lending channels are less stable. The Fed has already warned people that interest rates on bank loans are set to go up in 2019, with a focus on real estate. This is pushing investors away from traditional loans. As an alternative, New York property investors are looking to commercial lenders who understand the local markets and who are not under the same restrictions as traditional lending institutions.
Express Capital Financing offers a wide range of funding solutions for NYC commercial real estate transactions and projects. Contact our offices today and get the financing you need to make 2019 a successful year.