By now, everyone is aware that Amazon is coming to NYC. With that announcement, commercial real estate investors are focusing on getting properties ready to attract smaller businesses to serve the needs of Amazon employees. In other parts of Brooklyn and Queens, Opportunity Zones are offering major tax advantages to local property investors. Re-zoning in Brooklyn has also opened up new opportunities to generate revenue by converting formerly residential properties to spaces for retailers and service-based businesses. Underpinning all of this, however, is the need for multifamily rentals. In 2019, Brooklyn multifamily rentals are going to be in demand, and property investors are already making plans.

Jobs Bring People

With a major business setting up a campus in New York City, jobs will be created. The supporting businesses will also bring more employees to the area. All of these employees are going to need places to live. For quite a few of those working at the Amazon campus, mid-level to luxury apartments will be in demand. With the property market in Brooklyn shifting towards rentals instead of buying homes, property investors are purchasing and renovating multifamily rentals to anticipate the influx of people. Some are even converting existing properties into rentals or taking advantage of adaptive re-use on existing structures to attract new employees in Brooklyn.

Multiplied Revenue for Brooklyn Investors

The shift from owning homes to renting apartments could mean a major increase in revenue for Brooklyn property investors. Buying a selling property may yield handsome profits, but leased units create recurring revenue. Multifamily properties also create a cash flow buffer to guard against vacancies. If one tenant moved out of an apartment, revenue may drop a bit, but it doesn’t completely dry up, because of the people renting the other units. Obviously, the more units, the better the buffer and cash flow.

Financing Multifamily Properties in Brooklyn

Even with many analysts pointing to a lucrative shift towards multifamily properties in NYC, traditional lending channels still view real estate as a big risk. The point of entry for loans remains high and processing times are still long. 2019 is most likely going to see more rate hikes on traditional loans as well, placing more obstacles in the way of Brooklyn investors. The best way to finance multifamily properties in Brooklyn is with a company that is not only familiar with NYC commercial real estate markets, but who can actually offer solutions tailored to the needs of property investors.

Express Capital Financing finances commercial real estate transactions of all sizes throughout NYC. Contact our offices today to get a jump start on the next multifamily property rush in Brooklyn.