2015 was a great year for the New York City real estate market, as brokers, agents, and analysts gathered for the NYC Real Estate Expo recently. In an article from The Real Deal, many industry insiders shared their opinions that this trend would continue in 2016.
The anticipated sustained economic growth has been especially strong in New York City and that is prompting higher NYC apartments for rent and sales across the board, in both the housing and commercial markets, for both rentals and purchases.
Peter Von Der Ahe, a broker for Marcus & Millichap, said that 2015’s robust prices and the market conditions they are found in are expected to continue through at least the first half of next year.
Cushman & Wakefield has seen a large spike in 2015 rentals, and senior managing director Ken McCarthy, expects to see another strong year in 2016, especially as one of their biggest commercial clients is the financial services sector and related firms, and they are showing some of the largest growth.
Town Residential, a luxury real estate services firm, also predicts a strong showing in 2016 and has many listings that its analysts predict will only appreciate in value. Potential shoppers may be advised to act now before prices rise further.
Some panelists had reservations about certain obstacles that may be on the horizon that would inhabit this further growth in the industry. The most notable being this summer’s stock market volatility, an uncertainty surrounding each scheduled Federal Reserve announcement on potential interest rates, and international and domestic conflict and unrest that could upset the global market – all of which may deter real estate investors, purchasers, leasers, and renters.
Andrew Heiberger, CEO of Town Residential, however, sees that sales and leasing of property developments will continue unabated. Town Residential has mixed use commercial and residential developments across the city, most of which are in Manhattan, with many of its largest properties in lower Manhattan. Office space leasing by square footage is traditionally a good barometer of the city’s financial health and that of the economy in general.
As David Schectman of Meridian Investment Sales says, “There’s no place in the city that is not hip, that is not cool.” So any property holdings left from 2015 should be expected to be able to move in 2016 in this strong market.