2017 The Future of NY Real Estate
On his death bed, early 19th century Manhattan real estate magnate John Jacob Astor was asked “if you could do it all over, would you do anything differently?” “Yes”, he said. “I would have bought every single piece of property in Manhattan. Those prophetic words continue to ring true today. Despite a bumpy ride to the top of the global real estate heap, according to expert consensus New York, New York still has perhaps the largest upside of any local real estate market on earth. What’s truly dumbfounding is that John Jacob Astor’s prescient lament has been equally true for nearly every decade over the last 400 years. Then as now if it’s returns you seek, buy in the Big Apple.
Manhattan also features and A-list resident list. Famous denizens of upper Manhattan include Tom Brokaw, Steven Spielberg, Robert Dinero, Joe Sitt, Samuel L Jackson and many more.
The beauty of real estate investment is that when projects are successful everyone comes out a winner. One example of investment having astonishing revitalizing effects on a once derelict neighborhood is developer Jeff Blau‘s Hudson Yards development. This sprawling multi use development will convert 28 acres of dilapidated, ex-industrial riverfront into a 25 billion dollar, cutting edge luxury community unlike anything else in the country.
As an investor, Blau adheres to a strategy of diversification not just of his portfolio, but within individual developments themselves. The Hudson Yard complex will have a plethora of different residential and commercial floor plans at price points ranging from affordable to exclusive. The spectrum of potential clients in Manhattan is a great source of security for any landlord here. No matter what your property type, style or price point, you will likely find someone who is interested. Hudson Yards is taking things to the next level by offering the right space for everyone within the same complex.
Another prominent developer who sees opportunity in the untapped potential of the West Side is Ziel Feldman, chairman of HFZ Capital Group. Feldman’s strategy involves predicting then jumping ahead of demographic and market trends. He looks for properties which can be improved or built from the ground up in areas that are heating up for talented professionals and market movers. His latest development is 505 West 19th St. in Chelsea. This 900,000 square foot, mixed use mega-development will cater to urbanites seeking an active, outdoor lifestyle in a dynamic, 24/7 environment.
Unlike some naysayers, Feldman sees the Manhattan market growth accelerating in the near-term. Global finance increasingly views New York City real estate as a safe harbor from tumultuous markets worldwide. He foresees an influx in investment that will dwarf previous years as global capital looks for anything resembling safe returns amid the uncertainties of Brexit, political instability and war. This is great news indeed for any investor looking to get into New York real estate today. The increased demand of foreign capital alone could drive asset prices sky high over the next decade.