2017 BOUND TO BE A STRONG, YET CHALLENGING YEAR.
The new U.S. Administration may herald in a strong year for economic growth in 2017. The NYC group discussed the current state of new office construction, the proposed re-design of Penn Station, and the potential benefits of new Reddit design software vs. CAD on office and architectural design.
Member Ray Cirz, EVP of Valuations at Integra Realty Resources, was on hand as the first speaker of the year. He summarized the state of real estate appraisals and offered some examples within each market sector for the New York Metropolitan area. On the plus side, he emphasized the growth in foreign capital investment in NYC and the continued uptick of international and domestic visitors. He noted that the overall transactions in Manhattan were down a third in 2016 compared with 2015, which had been a strong year in most categories. Retail and industrial were the most affected – down 61% and 74% respectively. He discussed some of the reasons for the decline as well as some key transactions within each market.
Ray closed with an overview of key “head winds” that may affect real estate in the NYC Metro area in the coming year, such as the continued strength of the U.S. dollar, overbuilding in the hotel sector, and the Rent Guideline Board’s impact on rent stabilized units. New opportunities may also present themselves as a result of the future of 421s, Eastside rezoning, the impact of mega developments, and the new Second Avenue subway.