Investors Are Coming to New York in Droves, But the City Favors Its Own
March 7, 2012
By: Elaine Misonzhnik
Amid economic uncertainty in Europe, the Middle East and Asia, New York City is again becoming a destination for those seeking a safe haven. Except today it’s not impoverished immigrants, but cash-rich investors looking for opportunities.
New York remains one of the world’s major gateway cities—the kind of market that has thrived since the downturn. It is also experiencing renewed interest from apartment dwellers, retailers and corporations, pushing occupancy rates down and property values up. Plus, there is little room for new development in Manhattan, ensuring that even when one retailer or corporate tenant moves out, there’s a line of replacements waiting to sign new leases. ...
On the other hand, several New York-based brokers worry about how the new World Trade Center under construction Downtown will affect the class-B office stock that already exists in the area.
In the fourth quarter of 2011, the availability rate for properties Downtown already stood at 11.6 percent, above the citywide average of 11.1 percent, according to a report from Studley, a tenant advisory firm. ...
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