Real Estate Market

By Steven Spinola

President, The Real Estate Board of New York





A little more than three months into 2005, the New York City real estate industry is experiencing strong, steady growth. We have seen last year's surging market continue to grow, as the pace of commercial transactions increases and the residential market keeps breaking records.

Mayor Michael Bloomberg's aggressive, five-borough economic development plan has been progressing rapidly and has provided a powerful impetus to the improvement in market conditions here in the Big Apple. In January, for example, officials approved the rezoning of Manhattan's Far West Side, the largest such planning effort in city history. And there is much more encouraging news to report.

All in all, New York City real estate is a good place to be right now.

As this year's Commercial Property News special focus on New York City clearly shows, our city is in the midst of a dynamic market. This section highlights the growth of investment in New York real estate, promising developments in the commercial, multi-family and retail sectors?and redevelopment progress citywide.

Commercial transactions have been on the rise. Investors, many from overseas, keep showing strong interest in New York City properties. In addition to buying and selling property, our members are also developing. There is now 10.8 million square feet of office space under construction. Remarkably, that figure is double the amount being built at this time last year.

Developments under construction include One Bryant Park, 7 World Trade Center, The New York Times Building and Hearst Tower, just to name some major projects. Developers also plan some 3.8 million additional square feet for new projects, including Goldman, Sachs & Co.'s new headquarters and 400 W. 33rd St.?each exceeding 1 million square feet..

In short, the pace of building new commercial space demonstrates ever-increasing levels of investor confidence in New York. It also shows that developers expect employers to keep creating jobs here. New office space will continue to serve as a powerful engine for economic growth.

In terms of economic development, last year in this section we looked at the city's ambitious plans for Downtown Brooklyn and the Far West Side of Manhattan. A year later, tremendous progress has been made in both areas.

In Brooklyn, the BAM Local Development Corporation and its BAM Cultural District have stimulated a neighborhood revival, complete with a new theater designed by Frank Gehry that will house a major theater group. Forest City