New york commercial real estate
real estate includes construction, renting and selling of building, house, commercial space, malls, shopping complex etc. There can be residential flats, houses or condos or commercial building for office space, factories or big industries. commercial real estate in New York is dependent on many factors like demand and supply, stock market, securities, bank interest rates etc.
There are many deciding factors like architecture, location and office size that will affect the company's reputation. So companies have to be careful in finding their office spaces. There are many agencies that help you find a suitable commercial space. These agents of commercial real estate in New York will provide lot of services like financial analysis, market research, site selection, brokerage services and also insight into market intelligence local to that area. These are some of the popular names dealing with commercial real estate in New York.
NYSPACE has its listings for Manhattan commercial space. Cityfeet commercial real estate in New York helps brokers, investors and tenants to find a commercial space according to their requirement. It also connects the prospective buyers or tenants to the owners or brokers of other real estate agencies. Loopnet has over 594000 properties and it works for all New York cities. One can become a free member and search from the listings or even get registered with them. Upon registration you can find the right commercial space and also take their help in financial arrangements in form of loans or mortgage. manhattanoffices.com is prime office real ty in New York. It provides some free services to its tenants. The New York Times posts some ads for commercial real estate in New York.
commercial real estate in New York is mainly found in Midtown NY, Downtown, Wall Street and Manhattan. The real estate industry expected similar growth of building this year also. real estate did not bother much about the impending danger of the great American depression economic depression that was looming large, since the last two quarters of the previous year. The real istic effect of the depression was felt from the beginning of this year by ways of lower sales, dropping out of planned constructions, lesser demand etc.
We have so many statistics to prove that there is a slump in real estate specifically in commercial real estate in New York. There have been so many investment agencies conducting polls and surveys on the diminishing commercial real estate throughout United States of America. We also have some specific figures of the commercial real estate in New York State.
While the commercial real estate is already on decline, a survey by some investor services are predicting a further 15% - 20% decrease in commercial real estate prices for a couple of years. This means a heavy blow to profits in this industry. This information is disturbing to many and they may feel hesitant to believe it. But the above finding is not without substantial grounds. The agencies could predict and ascertain significant signs of decrease based on the following factors:
Manhattan experienced the least level of sales in its first quarter this year since 2005; sales reduced by 91% in its sales volume. There were $1.4 billion commercial sales in January in Manhattan, while in February it went down to mere $730 million.
Private, nonresidential construction expenditure dropped for three consecutive months prior to February though it was in profits in months before this.
The average cost per square foot of prime office spaces has reduced by 20%.
The real estate agencies have also been following the trend of some of the major financial house in their expansion plans. Merrill Lynch, Morgan Stanley and JPMorgan Chase have put off their plans to build new commercial buildings in Manhattan. There has been minimal or drop in expansion plans as we read below.
Morgan Stanley dropped its plans to build its headquarters at Hudson Yards site because of its bad financial situation incapable of this lavish expenditure. Though the plans have been shelved by Morgan Stanley, its partner Tishman Speyer Properties, decided to develop the site.
Merrill Lynch roped in Vornado real ty Trust few months to build its new headquarters on Seventh Avenue, Pennsylvania. It has had to silence its lavish plans due to investment write-offs to the tune of $25 billion.
JP Morgan had initially planned an office tower at World Trade Center. But JPMorgan has new ly acquired a Midtown headquarters which strongly suggests that it is not going to move its investment banking operations to the World Trade Center. JPMorgan is contemplating to return back 370,000 square feet facility at 345, Park Avenue to its landowner. Thus banks are rolling back their expansion plans.
Goldman Sachs on Wall Street is planning to construct a 43-storey building in Battery Park City by 2009. Its second tower in Jersey city is on hold, though it has the approval to build the second tower. So companies are shying away from their expansion plans.
There are some exceptions though like, Bank of America, which has built its new 55-story tower near Bryant Park.
Investment banks have offered loans, securities and easy credit because of which there was bloom in the real estate industry. When sub prime fiasco hit the country the secondary markets vanished and banks stopped its lending. No wonder real estate market also dropped. Federal Reserve Chairman Ben S. Bernanke made four interest rate cuts since the beginning of this year, but still the borrowing rates for commercial buildings have gone up by 1.25 percentage points. So it means to say that real estate specifically commercial real estate in New York is seeing down trend and hence it has to be patient to go back to its glorious days.
Other Articles
