Himelblau of Itzhaki details the N.Y. market and lessons learned
November 21, 2008 - Spotlight Content
What is unique about NY real estate market in comparison to the rest of the US?
Call it cliché, but there definitely is truth to it - NYC is the capital of the world.  This prominence, in and of itself, affords clear and definitive barriers to entry that, accordingly, establishes the popular synonymous expression that Manhattan real estate is indeed priceless. Priceless may be a large word but is relevant when compared to the rest of the U.S. Needless to say, when there are only so many s/f that line south side of Central Park, the demand is huge. Specifically because of this, the entire real estate industry has been beset by numerous professionals clamoring to assemble development projects and sales - all transpiring at a fast pace - a lot faster than anywhere else. This, in turn, brought about a market whereby timing (coupled with entry barriers) has become the ballast that fortified deals. Every day counts, every call is an opportunity.  There is always something happening on every block; every neighborhood has something unique to offer.  
  What lessons have you learned from past real estate trends that can be applied to today's market?
The real estate market operated in a bubble whereby debt was cheap. Banks consistently lent upwards of 90% loan to value that drove demand that, in turn, drove prices up. As a result of the credit crisis, we are faced with a renewed insurgence of back to basics fundamentals. A deal is only a real deal when the deal makes sense. There are no more shortcuts and there is no magic. To be a successful broker you must be fully educated as to the fundamentals of each deal and its marketability. This knowledge is the ammunition a broker must arm themselves with in order to educate potential sellers of the reality of the market. This knowledge can also empower a broker to cultivate creative financing structures to facilitate deal closings.
Inbal Himelblau is an investment sales agent at Itzhaki Properties, New York, N.Y.