If you read a few forecasts and analyses about Manhattan’s commercial real estate market, you walk away with a few conflicting views. Some say it’s in a slump. Others say the outlook is rosy and ready for profit, citing large deals made by billion-dollar corporations. The truth about the current state of the Manhattan CRE market is actually somewhere in the middle, especially for local investors and property developers.
Manhattan’s CRE Market for Multi-unit Residences
Apartment buildings, condos, and co-ops in Manhattan have had many doom and gloom stories over the past two years. It is true that the Manhattan CRE market for multi-unit properties did see lower sales and rental rates, but that seems to be turning around. More people are moving to NYC, and we have seen gigantic deals, such as the purchase of a luxury apartment building at 220 Central Park South. But that purchase is not an outlier so much as it is a signal that commercial real estate investors and developers can start purchasing, building, and renovating properties in Manhattan, because there are people looking to rent.
Retail and Corporate Properties in Manhattan
Manhattan’s retail and corporate properties have more conflicting stories. People like to point to the vacant storefronts in Manhattan, or cling to Google’s purchase of Chelsea Market in 2017. The truth is that there were almost $23 billion in office space and apartment sales in the first half of 2018 alone. While this still does not beat the 2015 high of $38 billion, it is double the yield from 2017. More businesses are moving to NYC and looking for prime space in Manhattan. There are city and state initiatives to make those vacant storefronts more accessible to local business owners. In short, the commercial real estate market in Manhattan is once again on the rise, but not at such a fast rate that it will create an artificial bubble. Investors and property developers stand to make a handsome profit by strategically purchasing, building, renovating, renting, and selling properties in Manhattan.
Financing Property Deals in Manhattan
Taking advantage of commercial real estate requires funding tailored to the size and scope of your projects. Whether you need extra funds for acquisitions and renovations, bridge or mezzanine financing for larger projects, or construction loans for long-term contracts, Express Capital Financing can help. We offer a wide range of funding solutions tailored to the Manhattan CRE market for transaction and projects of all shapes and sizes. Contact our offices today to get started.