'There is just no market at all'
Crain's New York Business
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Welcome to Crain's New York Top Stories. This week, senior reporter Eddie Small looks at why New York City property owners aren't selling.
Investment sales for the first quarter were the second-lowest they've been since at least 2015, according to data from Ariel Property Advisors . The only recent first quarter that saw less activity than in 2024 was 2021 when the city was still in the throes of the pandemic and just getting its vaccine rollout underway.
Multiple factors contributed to this year's slow start, but inflation and stubbornly high interest rates seem to be the main culprits.
Struggling property owners opting to seek bankruptcy protection instead of sales are slowing things down as well, given how notoriously lengthy the bankruptcy process is, said longtime New York sales broker Bob Knakal .
But there are signs of life. A few types of properties are still selling, namely multifamily buildings, empty commercial buildings and development sites that would be good for condo projects. The housing package in the recently passed state budget may also help provide a slight boost to activity.
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7mo vocal partido bloquista
10 个月Inspiring!
I reduce NYC property taxes for R&E.
10 个月“And although 485-x, the affordable housing tax break that has replaced 421-a, could eventually spark more multifamily deals, it will probably take years to have a noticeable impact, he said. “Gov. Kathy Hochul herself acknowledged at a recent housing event that the new tax program may not immediately spark a wave of activity, but she remained confident it would help the real estate industry in the long term. "I would say [to] the industry, if the market conditions aren't right for you right now, capital's expensive, interest rates are up, there will come a time when you will take advantage of this," she said at the event.