The Real Deal New York

story index

Publisher's Note

December 2007
  • The Commercial Slowdown

    Surveying the scene, from a drop-off in deals to the prospect of foreclosures

    After a record-breaking run, New York City’s commercial market has witnessed a dramatic slide in the wake of the credit crunch. Big-dollar building sales have sunk to their lowest levels in six quarters as money has gotten tougher to borrow. The pace of leasing deals has also slowed since the crisis hit this summer, as weakened financial firms are shying away from taking space. And so this month, as brokers and developers make the rounds […]… [more]

    Comments
    • Print
  • Getting a hotel room near the BQE

    Williamsburg gets first hotel in years

    North Brooklyn, home to hipsters, moms with strollers, and Williamsburg “trustafarians,” is getting its first hotel in decades — and a boutique hotel at that. “It’s a colony of yuppies, and it’s still a trendy cultural community,” according to Mukesh Patel, the developer of Hotel Le Jolie, which opened Nov. 16 in the Williamsburg/Greenpoint area. The new property is located at 235 Meeker Avenue near the Brooklyn Queens Expressway exit for Metropolitan Avenue. “I’m lucky. […]

    Comments
    • Print
  • The tale of two Upper East Sides

    Starter market hit harder, while high-end stays tight

    As the uber-wealthy continue to jockey for apartments worth tens of millions of dollars on the Upper East Side, not everyone in the notoriously tony neighborhood is faring as well. While the highest-end properties are in strong demand, brokers interviewed for The Real Deal’s monthly Q & A also noted that lower- end co-ops are lagging some, mid-range buyers will no longer stand for overpriced apartments, and, in some case, sellers have lowered their price […]

    Comments
    • Print
  • Sexy Ads: Undressed for success

    More risqué ads draw attention to new projects

    Some real estate ads shouldn’t be left lying on a coffee table when there are young children around. That’s because real estate developers know sex sells — and they are increasingly marketing their projects with explicit sexual images, or at least sexual undertones, even at the risk of offending older buyers. Spicy advertising has picked up in frequency in New York City in the last few years, as the number of units coming online has […]

    Comments
    • Print
  • Who got it right or wrong in 2007

    How experts' predictions nailed--or missed--the fallout from the subprime debacle

    It was a crazy year — the residential mortgage market went into crisis, the housing market got weaker in the U.S. (even though the city stayed relatively healthy), and the commercial market started showing signs of slowing too. Who would have thought? Read on to see The Real Deal’s check of the forecasters. Here’s who got it right, and who got it wrong. The predictions range from dead-on to dead wrong. Former chief economist of […]

    Comments
    • Print
  • Brokers saying ‘no thanks’ to stubborn sellers

    More brokers rejecting overpriced apartments

    There are brokers who will take an overpriced listing just to find potential buyers or to boast a listing in a reputable building. Now there is a growing cadre of brokers rejecting business from inflexible sellers with unrealistic expectations, choosing to reserve advertising dollars for, and put their energy into, listings that are more appropriately priced. “For the first time I can remember, we are actually seeing people turning down listings,” said 10-year veteran Michael […]

    Comments
    • Print
  • There’s a little storm cloud on the commercial horizon in New York. While the recent lending crisis hasn’t hit the commercial market, many observers think a Day of Reckoning might be coming. “Lending standards over the past few years were speculation-based, not performance-based,” says Adrian Zuckerman, the head of the New York real estate practice for the law firm of Epstein Becker & Green, P.C., and co-head of the firm’s national Real Estate Steering Committee. […]

    Comments
    • Print
  • Big versus small firms in the new market: When it pays to be the little guy

    Small, mid-sized brokerages may be best situated to weather the changed market

    In the land of billion-dollar building sales and mega-bucks lease signings, it’s difficult to make the case that bigger isn’t always better when it comes to New York commercial brokerages. But with the troubled credit market continuing to exert its influence on the city’s biggest real estate deals, quite a number of Davids out there are clearly relishing the fact that they’re not Goliaths. Although the heady world of Manhattan commercial real estate hasn’t taken […]

    Comments
    • Print
  • Big block leasing activity taps the brakes

    Credit crisis makes financial companies pause in pursuit of large blocks

    Large office tenants may have felt like they were playing a game of musical chairs through the first quarter of 2007: that if they didn’t grab a space when presented with one, they might be left empty-handed. That game has apparently concluded. Large users of office space are no longer rushing headlong to lock in a good deal. According to data compiled by the commercial brokerage Colliers ABR, while companies in New York City leased […]

    Comments
    • Print
  • In the wake of the credit crunch, vacant space is becoming more plentiful in Manhattan, though rents appear to be holding up well for now, especially in Midtown. The vacancy rate throughout Manhattan hit 7.6 percent in October, up from 6.8 percent the month before, according to the latest report from brokerage Colliers ABR. Midtown South saw the biggest increase in vacancy by far, with a jump of more than 2 percentage points to 9.7 […]

    Comments
    • Print