Commercial real estate industry is booming in the Tri-State region
Over the last few months, the volume of commercial real estate transactions in New York City has increased dramatically as a result of the influx of new money coming from both local and international investors. The world is looking at New York City as a prime place to invest dollars as money from countries such as China, Russia, Israel and Brazil are flowing this way. There is only one New York City and despite global economic turmoil and the national real estate crises, the New York real estate market has remained relatively strong.
Currently, interest rates are as low as 3% and the fed has indicated that rates will remain at this level for the next few years. Rates are lowered to boost the economy and, as far as local real estate goes, it's working because the New York City real estate market is booming! The low rates, as well as the lack of other viable investments, are a major driving force behind the upsurge in activity.
The overall economy is also lifted with this resurgence as ancillary institutions such as city and state agencies as well as law, environmental, and engineering firms thrive from the fees that are collected as each commercial transaction closes.
New York City neighborhoods from Washington Heights to Bedford Stuyvesant are benefitting from the boom in commercial real estate as new owners upgrade their properties leading to an overall revitalization of these areas.
We are confident that existing market conditions will only continue to improve and further boost the commercial real estate industry and New York City in the coming years.
Roni Abudi is managing director, senior broker at GFI Realty Services, Inc., New York, N.Y.
Story ran in the Front Section section on 08/28/2012