The commercial real estate market in New York City never rests. There may be slow times, such as during the last recession, but most investors realize that things will pick back up sooner rather than later.
As of late, due to small returns in Manhattan, many commercial real estate giants are looking to the outer boroughs, including Staten Island and the Bronx.
RXR Realty is one of the largest players in the Big Apple, often purchasing big name properties such as 340 Madison Ave. and 75 Rockefeller Plaza. However, with prices beginning to pick back up, RXR, among many others, are looking into a fresh investment strategy. RXR has plans to spend $1 billion in outer boroughs, including office space in Long Island City and retail buildings in Staten Island.
Many investors believe that there is too much money in Manhattan for too few properties. As a result, prices could be driven up while making returns slim.
Rather than continue down this path, many of the top real estate buyers are leaving the lack of opportunity in Manhattan behind. Instead, they are putting their money into outer boroughs that offer a better chance of a big return.
There is always something exciting going on in the New York City commercial real estate market. Right now, investors are beginning to spend less money in Manhattan and more money in outlying areas.
Those who need help securing a good deal on commercial real estate in the Big Apple may consult with a local real estate attorney with targeted experience and knowledge.
Source: Crain's New York Business, "Real estate giants look to outer boroughs" Daniel Geiger, Feb. 02, 2014