Bronx: Perfectly Positioned for Commercial Real Estate Developers and Investors
The number of homes sales in the Bronx soared in the first quarter of this year by +35 percent, far outpacing Manhattan -2%, Brooklyn -4% and Queens +6%. LichtensteinRE expects this current trend of demand to continue, which is a great sign for growth, development and returns for property investors and developers in the borough.
Source: Moving to the Bronx
By C.J. Hughes May 27, 20016
https://www.nytimes.com/2016/05/29/realestate/moving-to-the-bronx.html?_r=0
My name is Andrew Lichtenstein, Principal Broker of LichtensteinRE has been selling commercial real estate including multifamily and mixed use investment properties as well as development sites in Bronx, Brooklyn and Manhattan since 1991.
I have seen a huge upsurge in demand from real estate developers who are priced out of Brooklyn who are not vying to buy and build in The Bronx.
I have several development sites that are not receiving multiple offers.
I see this as a great opportunity for sellers and buyers and developers to take advantage of current low interest rates and relatively cheap apartment rents that are only rising.
It just makes perfect sense.
The average cost of land in the Bronx can be as dramatic as 10% of the cost compared to land in Manhattan, as little as 20% of the cost of land in Brooklyn, and 30% of the cost of land in Queens.
Bronx commercial real estate sales volumes in 2016 are poised to reach $2 Billion or nearly 34% greater sales volume than in 2015.
To top it off employment is growing nicely.
New York City's unemployment rate fell to 5.1% in May 2016 from 5.4% in April ... Bronx. 7.4%. 9.2%. Brooklyn. 5.5%. 7.2%. Manhattan. 4.6%. 5.7%. Queens.
Source: New York City Economic Development Corporation
I expect current trend of demand to continue, which is a great sign for continued growth, development and returns for property investors and developers in the Bronx.