The financial meltdown is drowning New York’s real estate market.
The nearly decade-long construction boom has ended abruptly. The city’s residential market, which seemed immune to the market turmoil as the average price of a Manhattan apartment has continued to rise, is about to see a sudden drop. The accelerating number of job losses is sending commercial vacancy rates up and rental rates down.
“I think it’s going to be like being pushed over a cliff,” said Louis Coletti, president of the Building Trades Employers’ Association. “2009 is shaping up to be a horrific year.”
Mr. Coletti’s organization puts the value of cancelled development projects at $5 billion and he thinks that figure will continue to rise.
Those invested in the future of the city’s real estate industry are armed with ideas to throw at the problem, ranging from tax incentives to streamlining government bureaucracy. Their primary hope, however, is that President-elect Barack Obama’s proposed $800 billion stimulus package will stop the decline.
“New York City must be ready to engage the federal infrastructure dollars,” said Mary Ann Tighe, chief executive for the New York Tristate region at CB Richard Ellis Inc. “It will go a long way toward something positive happening in a difficult period.”
In the meantime, the numbers are bleak.
Permits for new residential buildings fell 74% in November, according to the U.S. Census Bureau. A report by brokerage firm Prudential Douglas Elliman and real estate appraiser Miller Samuel Inc. noted that the number of apartments for sale in Manhattan rose 39% in the fourth quarter, pushing the inventory up to 9,081 apartments, the third highest level in a decade. The report for the first quarter is likely to show a decline in average prices of at least 15%, said Jonathan Miller of Miller Samuel.
With financial firms contracting and shedding space, commercial office leasing hit a seven-year low in the fourth quarter, falling 19%, to 19 million square feet, from the year-earlier period, according to a Cushman & Wakefield Inc. study. The plunge in activity pushed Manhattan’s overall vacancy rate to 8%. Average commercial rents fell $5, to $79.81 a square foot, the largest quarterly decline in memory.
The financial industry alone lost 17,800 jobs in the last 16 months, and as employment continues to drop, so too will rents. It’s the law of supply and demand at work. “The more people, the more requirement for space,” thus boosting rents, said Barry Gosin, chief executive officer of Newmark Knight Frank. The reverse holds true, of course.
To spur activity, Mr. Gosin recommends reinstating tax incentives for converting commercial space to residential use in lower Manhattan. The program — credited for revitalizing the financial district in the first part of this decade — would take commercial space off the market and boost slumping rents.
On the residential side, the city could liberalize the recently tightened 421-a tax exemption program to spur residential projects elsewhere in the city.
“This is a longer-term solution to a longer-term problem,” said Andrew Singer, chief executive of The Singer & Bassuk Organization, a real estate consulting firm, about revamping the 421-a program. The hope is that when banks start financing projects again, developers armed with a tax advantage could get back to work more quickly.
A reorganization of the New York City Department of Buildings sits at the top of Ms. Tighe’s to-do list. Reforming the commercial mortgage-backed securities market makes the cut, too.
If there’s no plan for dealing with problems that arise as those mortgages come to term, pain in the commercial sector could lead to the same wave of foreclosures that have crippled the residential market. Providing financing for commercial mortgages is “a critical step toward avoiding a major, major hit across the country,” said Steven Spinola, president of the Real Estate Board of New York.
While disagreement exists on the effectiveness of these programs, everyone believes the best hope for New York’s real estate and construction industries lies in the Obama stimulus plan and its hundreds of billions of dollars for infrastructure.
“There is the expectation that these investments will create thousands of jobs,” said Michael Della Rocca, president of the North American operations of Halcrow, a leading infrastructure firm. Mr. Della Rocca sees a twofold benefit from Mr. Obama’s stimulus package. In the short term, federal funding will stimulate jobs and spending on raw materials. In the long term, financing infrastructure projects will bolster confidence in the city among potential investors looking for places to do business.
“It’s necessary to do fundamental maintenance and operations,” said Mr. Della Rocca. But he argued that the government must also strategically dole out federal funds to projects like the Second Avenue Subway and East Side Access, which may not have as many immediate benefits but will create more jobs and more revenues in the future.
Mr. Spinola said that while the city may be down, it is certainly not out, and conditions remain a far cry from the 1970s. “The bottom line: People still want to be in New York,” he said.
Source: http://www.crainsnewyork.com/
Thursday, February 19, 2009
Monday, February 16, 2009
Strange But True Laws In New York
• A fine of $25 can be levied for flirting. This old law specifically prohibits men from turning around on any city street and looking “at a woman in that way.” A second conviction for a crime of this magnitude calls for the violating male to be forced to wear a “pair of horse-blinders” wherever and whenever he goes outside for a stroll.
• A license must be purchased before hanging clothes on a clothesline.
• A person may not walk around on Sundays with an ice cream cone in his/her pocket.
• Before the enactment of the 1978 law that made it mandatory for dog owners in New York City to clean up after their pets, approximately 40 million pounds of dog excrement were deposited on the streets every year.
• Citizens may not greet each other by “putting one’s thumb to the nose and wiggling the fingers”.
• Donkeys are not allowed to sleep in bathtubs in Brooklyn, N.Y.
• In Carmel, N.Y., a man can’t go outside while wearing a jacket and pants that do not match.
• In Greene, New York, During a concert, it is illegal to eat peanuts and walk backwards on the sidewalks.
• In New York, you can teach your pet parrot to speak, but not to squawk.
• In New York City you need a permit to transport carbonated beverages.
• In New York City it is illegal for a man to give ‘The Standard Lear’ to a woman. Violators are forced to wear horse blinders.
• In New York City, it’s illegal to throw swill into the street.
• In New York City it’s illegal to shake a dust mop out a window.
• In New York State it is still illegal to shoot a rabbit from a moving trolley car.
• In Ocean City, New York It is illegal to eat in the street in residential neighborhoods, and the only beverage you can drink on the beach is water in a clear plastic bottle.
• In Ocean City New York, It is illegal for men to go topless in the center of town.
• In Staten Island, New York, It is illegal for a father to call his son a “faggot” or “queer” in an effort to curb “girlie behavior.”
• In Staten Island, New York, You may only water your lawn if the hose is held in your hand.
• In Tonawanda, New York homeless people may not start a fire in the park unless they intend to cook food.
• It is against the law to throw a ball at someone’s head for fun.
• It is illegal for a woman to be on the street wearing “body hugging clothing.”
• It is illegal to jump off the Empire State building.
• It’s illegal in New York to start any kind of public performance, show, play, game or what have you, until after 1:05 p.m.
• Jaywalking is legal, as long as it’s not diagonal. That is, you can cross the street out of the crosswalk, but you can’t cross a street diagonally.
• Members of nine New York Indian tribes are exempt from the city’s eight percent parking tax.
• New York and a handful of other states require that toilets be evenly divided among men and women in public theaters or arenas.
• You may not smoke within 100 feet of the entrance to a public building.
• Women may go topless in public, providing it is not being used as a business.
• New York City may be the theater capital of the country, but it’s illegal to have a puppet show in your window and a violation can land you in the snoozer for 30 days.
• New Yorkers cannot dissolve a marriage for irreconcilable differences, unless they both agree to it.
• Ocean City: It is illegal to eat in the street in residential neighborhoods, and the only beverage you can drink on the beach is water in a clear plastic bottle.
• Slippers are not to be worn after 10:00 P.M.
• Staten Island: You may only water your lawn if the hose is held in your hand.
• The New York City Transit Authority has ruled that women can ride the city subways topless. New York law dictates that if a man can be somewhere without a shirt, a woman gets the same right. The decision came after arrests of women testing the ordinance on the subways. A transit police spokesman said they would comply with the new rule, but “if they were violating any other rules, like sitting on a subway bench topless smoking a cigarette, then we would take action.” Smoking is not allowed in the subways.
• The New York State Senate passed a resolution to commemorate the 25th anniversary of the Brooklyn Dodgers’ 1955 world championship and expressed a longing that someday the Dodgers will return to “their one and only true home.”
• The penalty for jumping off a building is death.
• To cut down on its once-horrific graffiti problem, New York City several years ago made it illegal to carry an open can of spray paint.
• While riding in an elevator, one must talk to no one, and fold his hands while looking toward the door.
• A license must be purchased before hanging clothes on a clothesline.
• A person may not walk around on Sundays with an ice cream cone in his/her pocket.
• Before the enactment of the 1978 law that made it mandatory for dog owners in New York City to clean up after their pets, approximately 40 million pounds of dog excrement were deposited on the streets every year.
• Citizens may not greet each other by “putting one’s thumb to the nose and wiggling the fingers”.
• Donkeys are not allowed to sleep in bathtubs in Brooklyn, N.Y.
• In Carmel, N.Y., a man can’t go outside while wearing a jacket and pants that do not match.
• In Greene, New York, During a concert, it is illegal to eat peanuts and walk backwards on the sidewalks.
• In New York, you can teach your pet parrot to speak, but not to squawk.
• In New York City you need a permit to transport carbonated beverages.
• In New York City it is illegal for a man to give ‘The Standard Lear’ to a woman. Violators are forced to wear horse blinders.
• In New York City, it’s illegal to throw swill into the street.
• In New York City it’s illegal to shake a dust mop out a window.
• In New York State it is still illegal to shoot a rabbit from a moving trolley car.
• In Ocean City, New York It is illegal to eat in the street in residential neighborhoods, and the only beverage you can drink on the beach is water in a clear plastic bottle.
• In Ocean City New York, It is illegal for men to go topless in the center of town.
• In Staten Island, New York, It is illegal for a father to call his son a “faggot” or “queer” in an effort to curb “girlie behavior.”
• In Staten Island, New York, You may only water your lawn if the hose is held in your hand.
• In Tonawanda, New York homeless people may not start a fire in the park unless they intend to cook food.
• It is against the law to throw a ball at someone’s head for fun.
• It is illegal for a woman to be on the street wearing “body hugging clothing.”
• It is illegal to jump off the Empire State building.
• It’s illegal in New York to start any kind of public performance, show, play, game or what have you, until after 1:05 p.m.
• Jaywalking is legal, as long as it’s not diagonal. That is, you can cross the street out of the crosswalk, but you can’t cross a street diagonally.
• Members of nine New York Indian tribes are exempt from the city’s eight percent parking tax.
• New York and a handful of other states require that toilets be evenly divided among men and women in public theaters or arenas.
• You may not smoke within 100 feet of the entrance to a public building.
• Women may go topless in public, providing it is not being used as a business.
• New York City may be the theater capital of the country, but it’s illegal to have a puppet show in your window and a violation can land you in the snoozer for 30 days.
• New Yorkers cannot dissolve a marriage for irreconcilable differences, unless they both agree to it.
• Ocean City: It is illegal to eat in the street in residential neighborhoods, and the only beverage you can drink on the beach is water in a clear plastic bottle.
• Slippers are not to be worn after 10:00 P.M.
• Staten Island: You may only water your lawn if the hose is held in your hand.
• The New York City Transit Authority has ruled that women can ride the city subways topless. New York law dictates that if a man can be somewhere without a shirt, a woman gets the same right. The decision came after arrests of women testing the ordinance on the subways. A transit police spokesman said they would comply with the new rule, but “if they were violating any other rules, like sitting on a subway bench topless smoking a cigarette, then we would take action.” Smoking is not allowed in the subways.
• The New York State Senate passed a resolution to commemorate the 25th anniversary of the Brooklyn Dodgers’ 1955 world championship and expressed a longing that someday the Dodgers will return to “their one and only true home.”
• The penalty for jumping off a building is death.
• To cut down on its once-horrific graffiti problem, New York City several years ago made it illegal to carry an open can of spray paint.
• While riding in an elevator, one must talk to no one, and fold his hands while looking toward the door.
Friday, February 13, 2009
Top Ten Things to do in Brooklyn
1) Walk The Brooklyn Bridge
For a truly unique view of the spectacular Manhattan skyline, walk over the brooklyn bridge through its intricate steel cables. Centre St. in Manhattan is your starting point (btwn Chambers/Murray east of City Hall).
Subway to walkway: 4/5/6 to Bklyn Bridge/City Hall; J/M/Z to Chambers.
2) Stroll along the Japanese Hill-and-Pond Garden
This relaxing Japanese Hill-and-Pond Garden makes for a great stroll on a sunny NYC day. There are plenty of amazing lush garden paths around the crystal clear pond.
Subway: B or Q to Prospect Park (B doesn't run on weekends) or the 2/3 to Eastern Parkway.
3) Tour the Historic (and spooky!) Green-Wood Cemetery
Green-Wood Cemetery is home to great permanent residents like Basquiat and Leonard Bernstein as well as a half million others. There are fascinating walking tours that explore the great architecture, sculpture, and history of this cemetery.
Subway: R to 25th Street. 718.768.7300. In Sunset Park.
4) A Day at Coney Island
If you are fortunate enough to live in Brooklyn then you must make a trip out to the historical and fun filled Coney Island. Coney Island is one of America's most iconic classic amusement parks. The wonder wheel, cyclone roller coaster, and new york aquarium are just some of the many attractions that can easily fill up your day. While you're out there, make a quick trip to Brighton Beach and experience the rich Russian culture.
Subway: F to Ave. X.
5) First Saturdays at the Brooklyn Museum
If it's cultural refinement you seek look no further then the Brooklyn Museum. The Brooklyn Museum hosts "First Saturday" events on the first saturday of each month. Enjoy a night of harmonious music, art, and entertainment totally free of charge! Food, beverages and a cash bar available.
Subway: 2 or 3 to Eastern Parkway. For info: 718.768.7300.
6) Pizza at Grimaldi's
For a classic Brooklyn pizza experience, look no further then Grimaldi's. Coal oven-baked crust, savory sauce and homemade mozzarella keep the crowds coming back again and again. Overly crowded on weekends and long lines on the weekdays but well worth the wait for a taste of one of the best slices of pizza in town.
19 Old Fulton St.(under the Brooklyn Bridge). 718.858.4300. Subway: A/C to High St.
7) Cheesecake at Junior's If desserts are your thing, then head to Junior's for the best cheesecake ever. Dozens of varieties to choose from and each are to die for. Juniors is often crowded but worth the wait. 386 Flatbush Avenue Extension at Dekalb Avenue. 1.800.4JUNIOR (1.800.458.6467) Subway: A/C to Jay St.
After you're done savoring all the delicious goodness at Grimaldi's, head on over to Juniors for some amazing cheesecake for dessert. There are dozens of varieties to choose from and can satisfy the taste buds of anyone who appreciates cheesecake. Not surprisingly, this place is also crowded but well worth the wait in line.
386 Flatbush Avenue Extension at Dekalb Avenue. 1.800.4JUNIOR (1.800.458.6467) Subway: A/C to Jay St.
8) Take in a Cyclones' Game
For the Sports fans you can get a great thrill by catching a Cyclones at the 7,500 seat capacity KeySpan Park at Coney Island.
1904 Surf Avenue 718.449.8497 Subway: F to Avenue X.
9) Peter Luger Steakhouse
Peter Luger is by far one of the best places anywhere to enjoy a steak. Service is unmatched in its quality and reservations are near impossible with so many people wanting the privlege to dine at this fine restaurant. However, if you are lucky enough to get through their doors and be seated your reward is an amazing porterhouse steak that is near divine perfection.
178 Broadway (at Driggs) In Williamsburg. Subway: J/M/Z to Marcy Ave.
10) Prospect Park
For the outdoors enthusiast, Prospect Park offers endless activities including the nation's first Audubon center, Wollman skating rink and the beautiful 1912 Carousel.
F to 15th Street/Prospect Park. Events Info: 718.965.8999.
For a truly unique view of the spectacular Manhattan skyline, walk over the brooklyn bridge through its intricate steel cables. Centre St. in Manhattan is your starting point (btwn Chambers/Murray east of City Hall).
Subway to walkway: 4/5/6 to Bklyn Bridge/City Hall; J/M/Z to Chambers.
2) Stroll along the Japanese Hill-and-Pond Garden
This relaxing Japanese Hill-and-Pond Garden makes for a great stroll on a sunny NYC day. There are plenty of amazing lush garden paths around the crystal clear pond.
Subway: B or Q to Prospect Park (B doesn't run on weekends) or the 2/3 to Eastern Parkway.
3) Tour the Historic (and spooky!) Green-Wood Cemetery
Green-Wood Cemetery is home to great permanent residents like Basquiat and Leonard Bernstein as well as a half million others. There are fascinating walking tours that explore the great architecture, sculpture, and history of this cemetery.
Subway: R to 25th Street. 718.768.7300. In Sunset Park.
4) A Day at Coney Island
If you are fortunate enough to live in Brooklyn then you must make a trip out to the historical and fun filled Coney Island. Coney Island is one of America's most iconic classic amusement parks. The wonder wheel, cyclone roller coaster, and new york aquarium are just some of the many attractions that can easily fill up your day. While you're out there, make a quick trip to Brighton Beach and experience the rich Russian culture.
Subway: F to Ave. X.
5) First Saturdays at the Brooklyn Museum
If it's cultural refinement you seek look no further then the Brooklyn Museum. The Brooklyn Museum hosts "First Saturday" events on the first saturday of each month. Enjoy a night of harmonious music, art, and entertainment totally free of charge! Food, beverages and a cash bar available.
Subway: 2 or 3 to Eastern Parkway. For info: 718.768.7300.
6) Pizza at Grimaldi's
For a classic Brooklyn pizza experience, look no further then Grimaldi's. Coal oven-baked crust, savory sauce and homemade mozzarella keep the crowds coming back again and again. Overly crowded on weekends and long lines on the weekdays but well worth the wait for a taste of one of the best slices of pizza in town.
19 Old Fulton St.(under the Brooklyn Bridge). 718.858.4300. Subway: A/C to High St.
7) Cheesecake at Junior's If desserts are your thing, then head to Junior's for the best cheesecake ever. Dozens of varieties to choose from and each are to die for. Juniors is often crowded but worth the wait. 386 Flatbush Avenue Extension at Dekalb Avenue. 1.800.4JUNIOR (1.800.458.6467) Subway: A/C to Jay St.
After you're done savoring all the delicious goodness at Grimaldi's, head on over to Juniors for some amazing cheesecake for dessert. There are dozens of varieties to choose from and can satisfy the taste buds of anyone who appreciates cheesecake. Not surprisingly, this place is also crowded but well worth the wait in line.
386 Flatbush Avenue Extension at Dekalb Avenue. 1.800.4JUNIOR (1.800.458.6467) Subway: A/C to Jay St.
8) Take in a Cyclones' Game
For the Sports fans you can get a great thrill by catching a Cyclones at the 7,500 seat capacity KeySpan Park at Coney Island.
1904 Surf Avenue 718.449.8497 Subway: F to Avenue X.
9) Peter Luger Steakhouse
Peter Luger is by far one of the best places anywhere to enjoy a steak. Service is unmatched in its quality and reservations are near impossible with so many people wanting the privlege to dine at this fine restaurant. However, if you are lucky enough to get through their doors and be seated your reward is an amazing porterhouse steak that is near divine perfection.
178 Broadway (at Driggs) In Williamsburg. Subway: J/M/Z to Marcy Ave.
10) Prospect Park
For the outdoors enthusiast, Prospect Park offers endless activities including the nation's first Audubon center, Wollman skating rink and the beautiful 1912 Carousel.
F to 15th Street/Prospect Park. Events Info: 718.965.8999.
Tuesday, February 3, 2009
The Yuppies are coming! The Yuppies are coming!
Even in these difficult economic times some things never change. People will always need a place to eat, a place to entertain themselves and forget the reality of the world they live in, and above all a place to live. The Real Estate market, especially when dealing with rentals, is always changing and adapting. These changes are clearly visible when key demographic neighborhoods either suddenly or gradually shift from one traditional demographic to another. The latest neighborhood to see this shift in demographic tenant population is Washington Heights, or more commonly know to New Yorkers as “The Heights”. Dominican and Cuban culture has long dominated this area. You can see this rich Latin flare in everything from the local shopping scene to the delicious food that can be found all over this neighborhood. This rich cultural scene has not gone unnoticed and the latest waves of new tenants are quickly snatching up apartment units in this area.
Yuppies from near and far are making their way to the heights and are willing to pay top dollar for the privilege to live in this vibrant neighborhood. The cultural clash of both Latin and Yuppie lifestyle is sure to increase the vitality and attractiveness of this latest hotspot. This prime location is perfect for those who want to make a quick getaway for a day to Jersey, which is just over the George Washington Bridge, located right in the Heights. The nearby 1,2,3 trains as well as the A train make a trip to Midtown or Downtown Manhattan as easy and quick as possible. With thousands of apartments available, The Heights is well on its way to becoming the new trendy “it” spot for Yuppies everywhere.
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