In New York continues the boom in the commercial real estate market

Property prices in New York continue to grow, and there is no end to the boom in this market, writes AM New York. Reporters discussed the situation with experts in the field of commercial real estate.

Financial services company TIAA-CREF has closed a deal to buy a building in the upscale Meatpacking District, Manhattan. The cost of the acquisition of the building at the address 837 Washington Street amounted to 200 million dollars.
Representatives of the company-buyer refused to comment on the decision to purchase expensive real estate. The 6-storey building has an area of ​​63 000 feet, and each one costs roughly 3 158 dollars.

“Today, investors are willing to pay crazy amounts for real estate, and owners are willing to sell,” says Aleksandra Skepanovic, managing director of the Ideal Properties group of real estate agencies.

A report released last week by Cushman & Wakefield, a major commercial real estate firm, found that there were about 2014 deals in 5200 in New York City, up 2000 from 2013. The turnover of the commercial real estate market last year amounted to $ 55,8 billion, 20% higher than a year earlier. It was the highest since 2007, when $ 62,2 billion in real estate were sold in New York.

Alexandra Skepanovich says that the growing demand for offices and commercial real estate is accompanied by a similar boom in the market of expensive apartments. The luxury housing market continued to grow steadily over the past two years.

2014 was the best year for the office rental market since 2005, according to the office real estate agency DTZ Group. Offices in New York are flying like hot cakes, and from 2013 to 2014 a year the number of available office space available for rent has dropped by 9,3%. The average monthly cost of renting an office increased from 65 to 70 dollars per square foot.

Experts believe that all these facts confirm the beginning of the long-awaited economic growth.

Recently, however, the requirements of buyers and tenants of commercial real estate change. So, small start-up companies prefer compact offices with no frills, but the location of the building still plays a key role.