Believe it or not, the NYC’s regulatory environment is actually pretty pro-development: study

New York isn’t as much a high-barrier-to-entry market as everyone thinks

New York /
Jul.July 03, 2017 09:25 AM

Industry players who constantly refer to New York City as a market with a high barrier to entry may want to refresh their talking points. Sure, the high cost of land will continue to weed out some of the competition, but when it comes to the regulatory environment, the Big Apple is actually pretty pro-development.

New York City earned a score of 5 out of 10 in A New Report By Green Street Advisors looking at the barriers to commercial real estate supply in the nation’s top markets, the Wall Street Journal reported.

New York scored better than West Los Angeles – which earned a score of 10 – as well as San Francisco, Washington, D.C., Boston and downtown L.A. The report credits policy changes enacted during Mayor Michael Bloomberg’s administration such as rezonings and economic incentives for a swell of new supply across different property types.

The growth in hotels, apartments and self-storage are indicative of the effect those pro-growth policies had on new supply.

“Even self-storage, which has long benefited from NIMBYism, is experiencing an explosion of new supply,” the report read. “Self-storage inventory in Brooklyn, Bronx, and Queens is expected to grow at an outsized annual rate of 5-7% through the end of the decade.”

The report noted that proposals from Mayor Bill de Blasio to limit new hotel and self-storage development could impact the city’s score. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
US HUD Secretary Marcia Fudge (Getty, iStock)
HUD secretary declares Miami “epicenter” of housing crisis
HUD secretary declares Miami “epicenter” of housing crisis
A photo illustration of the Gowanus neighborhood (iStock)
Judge OK’s Gowanus rezoning, calling opponents late and off base
Judge OK’s Gowanus rezoning, calling opponents late and off base
From left: 121 West 26th Street, Watermark’s Brendan Medzigian and Two Kings Principal Christopher Wang (Google Maps, Watermark , LinkedIn)
Watermark Capital sells Holiday Inn in Chelsea for $80 million
Watermark Capital sells Holiday Inn in Chelsea for $80 million
Carlton Hobbs with 60 East 93rd Street (Getty, Google Maps)
One of NYC’s widest townhouses sells for $53M
One of NYC’s widest townhouses sells for $53M
Kathy Hochul, Samy Nemir Olivares, Lee Zeldin, Nikki Lucas, Keron Alleyne, Erik Dilan (Getty Images, iStock, Nikki Lucas, Keron Alleyne, Samy Nemir Olivares, Facebook)
Real estate’s election winners and losers
Real estate’s election winners and losers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...