Some commercial real estate experts recently expressed concern about the real estate market, specifically the leasing market in New York. They stated they were not feeling settled about the future absorption of space in Manhattan, for example, in spite of the currently strong commercial real estate market. However, data appear to indicate that the market is better off than what many real estate experts expected it to be.
One broker in New York a few weeks ago stated that there was no depth to the real estate market beyond a few major negotiations that were taking place. Meanwhile, another broker emphasized that the majority of large-scale transactions slated to be completed during the next year should add to real estate availability. This is because companies will end up leaving behind more space than that which they are moving into.
However, data show that the leasing scene in New York is still relatively healthy. There have been several negotiations for large blocks of space, such as a potential blockbuster for Pfizer that spans 600,000 square feet. Another negotiation involves a 200,000 square-foot space for Shisedio Cosmetics. Strength has also been seen in the market of investment sales, with the average price for an office building going up 7.5 percent from the same period last year.
Even spaces under 100,000 square feet appear to have strong potential right now, with these spaces accounting for a whopping 60 percent of all leases signed during the first half of this year. Based on the current data, now may be a promising time to take advantage of commercial real estate buying and selling opportunities in New York. An attorney can help buyers and sellers to navigate these complex processes so that they can attain favorable results.
Source: nypost.com, “Commercial real estate could be in better shape than expected“, Steve Cuozzo, July 18, 2017