Is the latest New York real estate boom winding down? Speakers at NYCREW’s recent “Global Real Estate Trends 2014” panel think so, citing weak employment growth and cyclical forces.
“Last year was a great year,” said Dennis Yeskey, the chairman of MIT’s Center for Real Estate, who has spoken at this annual presentation by New York Commercial Real Estate Women for the past seven years. “And in 2014, we’re going to have another good year, almost great. But beware 2015.”
Heidi Learner, chief economist of Studley, said the New York City office market has seen a number of positive developments, but the “growth spurt” likely is over.“It will be a bit lackluster over the next six to nine months,” she said.
Rising office rents do not necessarily indicate a strong market, as the New York market has a high ratio of Class-A space to the overall total, skewing rent averages.While unemployment is down and other economic indicators are positive, Learner noted that New York’s office-employment growth is still weak. Fewer than 6,000 new office-using jobs have been added since December. “We are not going to see a big rebound in the financial sector,” Learner noted.Growth spurt coming to an end, experts warn
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