New York City Looks Ahead to Change and Growth in 2017
With the new Administration in Washington promising to focus more on business and economic development, the NYC group sees change in the air – some of it positive, some of it challenging.
On one hand, the Fed raised interest rates this month and proposes two possible hikes next year. Two new tax bills are facing Congress next year, one affecting total write-offs and the other 1031 exchanges. And changes in leaseback accounting procedures outlined by guest/member speakers Paul Jhung and Matthew Derba from CohnReznick, offer new challenges for lessees and lessors alike.
On the other hand, companies and investors are still bullish on New York City. Vacancy rates are low, especially in some of the “vintage” buildings downtown. New construction is planned or in work for several large areas of midtown and midtown-south. Current design trends, like open offices, industrial-looking spaces, pre-built work areas, and modern, upgraded amenity spaces, are increasing property value. There is also an increase in the use of new technologies – like the use of drones, 3-D imaging and other hi-tech options – to increase office space sales.