In real estate terms, Brooklyn seems like it has already arrived, but but evidently there’s more room for growth.
The borough ranked as the No. 2 overall U.S. market to watch in the annual “Emerging Trends in Real Estate” survey, which also put Miami and Los Angeles near the top of the pack.
Chicago came in at a middling 49 out of the 79 biggest real estate markets nationwide, down seven spots from last year — and 30 spots from two years ago, according to Crain’s.
The annual report from PwC and the Urban Land Institute is compiled from a survey of investors, developers and lenders. Dallas led the list, which had Manhattan in 32nd place and the remaining three New York City boroughs at 27th.
Miami ranked 12th and Los Angeles 14th. The Inland Empire east of L.A. came in at 40th.
Overall, survey respondents were cautious about the direction of the broader market, wondering how much longer the good times will last.
“’Coming off a peak’ seems to be a theme,” the report said. “One major institutional investor whose base case is for a continuation of the upcycle acknowledged, ‘We are adjusting a little bit right now.’”
Despite its poor showing Chicago remains “an attractive gateway market for investment,” the report said, as it remains relatively less expensive compared to other markets. But along with rising interest rates in general, the city and state’s fiscal problems have made some investors wary of buying here, worried that they might be hit with big property tax increases. [Crain’s] — John O’Brien