Avison Young executives presented an in-depth briefing on trends and outlook for New York City commercial real estate (CRE) at BOMA New York’s “2023 State of the Market” event. The presentation featured two of the nation’s leading experts on high-level investment sales and financing: Scott Singer, Principal, Co-Lead of Tri-State Debt & Equity Finance; and James Nelson, Principal, Head of Tri-State Investment Sales. Moderated by Glenn Waldorf from Bell Environmental Services Inc., the panel discussed present day conditions related to work from home phenomenon as well as federal government efforts to combat inflation with higher interest rates.
The panelists provided hard evidence that workers are returning to their offices while capex spending is trending upwards across all building classes due largely to NYC’s global business allure which has proven resilient throughout this pandemic period. They noted a shift in owner/tenant dynamic driven by owners’ desires to make their buildings more attractive for tenants – Class A buildings performing better than ever before – along with end users actively buying properties based on specific needs rather than institutional buyers being sidelined during this time period.
In terms of financing activity there was a 59% decline in dollar volume during first quarter 2023 however it was pointed out that news media had misreported occupancy statistics significantly lower than those reported by Real Estate Board Of NY who found 61% return rate increasing daily despite fluctuations in mortgage interest rates over past decades ranging from 8 percent up until recently when 2.64 percent became lowest long term rate ever locked but now back into fives range again making deals still possible today even if not yet reaching 2015 peak sales volume levels seen prior pandemic onset .
Overall both experts were bullish about CRE market noting people have wanted urban centers congregations for thousands years so NYC will continue be desirable destination regardless current market conditions providing opportunities investors take advantage off soon enough .
