NYC brokers worried about slow sales, sluggish leasing: REBNY

“The market is currently slow and deliberate."

New York /
Sep.September 12, 2017 12:50 PM

While buoyed by current financing conditions, brokers are wary about how the residential rental and commercial leasing markets will play out in the next six months.

The Real Estate Board of New York’s broker confidence index, which measures overall residential and commercial real estate broker outlook, rose .02 from the first quarter of 2017, hitting 5.89 in the second quarter. The future index, however, which measures confidence in the next six months, fell .14 from the last quarter to 5.56.

“While our members report slower decision-making and price sensitivity, they remain positive about the market with optimism for improved financing conditions,” REBNY President John Banks said in a statement.

Residential sales are slow, though new development projects are “experiencing good absorption,” one broker noted.

“The market is currently slow and deliberate,” another broker said in the survey. “Buyers are holding back for exactly what they want, although there is not a great deal of inventory. Sellers are becoming more flexible.”

Respondents were optimistic about current and future financing, indexing the two at 8 and 8.7, respectively.

Meanwhile, some commercial brokers are nervous about leasing activity in the near future, especially when it comes to retail. The city has been grappling with rising rents and vacant storefronts, forcing landlords to offer significant concessions to lure tenants. According to the survey, expectations of the leasing market six months from now had an index of 3.78, a 1.01 drop from the first quarter of 2017.

 

Related Articles

arrow_forward_ios
Los Angeles, New York and Miami metro areas are in the top 10 of owner-occupied million dollar homes. (iStock)
These metro areas have the most — and fewest — million-dollar homes
These metro areas have the most — and fewest — million-dollar homes
A closer look at Compass’ trail of litigation over its business tactics
A closer look at Compass’ trail of litigation over its business tactics
A closer look at Compass’ trail of litigation over its business tactics
Salesforce CEO Marc Benioff and Amazon's Jeff Bezos are backing the startup (Getty, Arrived)
Bezos-backed Arrived Homes is latest startup to expand real estate investment
Bezos-backed Arrived Homes is latest startup to expand real estate investment
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
The Roger New York hotel at 131 Madison Avenue, Larry Korman of AKA Hotel Residences and Joe Lubeck of Electra America (Google Maps, Getty, Electra)
Electra America JV nabs Roger hotel for $71M discount
Electra America JV nabs Roger hotel for $71M discount
Orchard's Patrick McClymont and HomeLight's Sean Aggarwal (Photos via IMAX, The Org)
Orchard, HomeLight move toward IPOs with new execs
Orchard, HomeLight move toward IPOs with new execs
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Demir Sabanci and 41-47 West 57th Street (Sedesco, Google Maps)
Sedesco seeks rezoning for new Billionaires’ Row skyscraper
Sedesco seeks rezoning for new Billionaires’ Row skyscraper
arrow_forward_ios

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

Loading...