Avison Young executives recently 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 panel featured two 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, the presentation delivered an up to date message that post pandemic recovery is in full swing with workers returning to offices across all building classes while capex spending and deal closings are trending upward.
The panelists discussed what makes NYC so different from other global business centers – citing its diversity as well as range of industries which draw people from all ages wanting to be there – along with a deep talent pool now seeing many returners who had left previously. Owners have also become more attractive towards tenants due to Class A buildings performing better than ever before based on office tenants understanding their prospective employees will be drawn towards these properties more easily than others.
On the financing side fluctuations were noted over recent decades where long term rates have been seen as low at 2.64%. Despite this shock when interest rates began increasing again earlier this year deals still got done despite being far away from 2015’s peak sales volume $68 billion mark or even first quarter 2023’s 59% decline in dollar volume financings reported by Real Estate Board Of New York report showing 61% worker returns increasing daily however end users actively buying such as Hyundai’s March 2023 purchase for cash was cited due it fitting their needs exactly making them want it regardlessly .
Overall both experts agreed market dynamics are evolving positively with owners/tenants relationships improving significantly whilst low cost providers becoming obsolete instead replaced by those offering lower rents but professional management drawing workers back into urban centres just like they’ve wanted for thousands years!
