Commercial Real Estate and Mortgage In New York
Article Summary: This article will help anyone looking for information pertaining to a commercial real estate and commercial lending in the State of New York.
Depending on where an investor is looking, New York commercial real
estate can be at a premium or at an amazing bargain. Commercial real
estate in the banking, financial and communication districts of New York City
and its surrounding counties is some of the most expensive in the country. Upstate
New York offers plentiful, cheap, raw land, but not a lot else. Industries that
make use of the commercial real estate successfully in other areas of the state
are printing and publishing, machinery, chemical production, and tourism.
Like other major cities across the country, New York experienced a condo-conversion
boom the last two or three years, with many developers converting old office
buildings to condominiums. These days, owners of old office space are doing
just the opposite. The commercial development market has become so strong that
it makes more sense to update the buildings and lease them or to sell them outright.
Even developments slated for mixed use are going to pure office space. Large
blocks of office space in the City are so rare that developers can't pass up
this opportunity, with rents, at the low end, of $50 to $70 per square foot.
Indeed, office rents are at a record high in Manhattan, with some locations
commanding over $150 per square foot. Old office buildings are also being converted
into boutique hotels. That having been said, the market for retail condos, which
work exactly the same way as residential condos, has busted wide open.
Another hot area in the City is gallery space. The art market
is red hot right now and many gallery owners are scrambling for more gallery
space, particularly in Chelsea where gallery rents have skyrocketed in the last
decade. Space that went for $8 per square foot ten years ago now goes for $80
per square foot.
Outside New York City, White Plains is experiencing a huge real estate boom
in its downtown area. Major luxury players like the Ritz-Carlton and Donald
Trump have already moved into the heart of White Plains' business district,
but there are still large swaths of the downtown area that were missed by the
first stage of development. The "unrevitalized" areas are mostly
home to public housing and mom-and-pop shops - and even a few vacant lots.
Developers are eyeing it for revitalization, with strong encouragement from
the city, which is putting together a formal development plan and has already
made known its desire for large-scale retail and medical office development.
Housing is at a standstill in the state because, overall, New York's
population is growing very slowly. There is no room to build in New York City,
and those who want to live close to the city for less money choose neighboring
states rather than neighboring towns. There is some small-scale residential
development around Albany, but, in general, both Albany and Buffalo are facing
declining populations.
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