A few of our team members sat in a room of industry heavyweights gathered for a discussion regarding the state of the NYC multifamily market. What everyone seemed to be in agreement with was that the rental market continues to rely heavily on tenant concessions, and that investors continue to search for new opportunities in Brooklyn, Queens, and Bronx.
“Those of us with capital to deploy aren’t doing anything. We’re looking for opportunities, and we’re not finding them” says a partner Rockwood Capital.
The balance of power has shifted to favor tenants; landlords are not only offering concessions to entice new tenants, they’re aggressively negotiating on renewals with existing tenants as well. What does this all mean, and what can we expect to see this year?
Glut of luxury apartment inventory - Yes, there has been a large amount of inventory added recently and we will continue to see new product being delivered throughout this cycle. However, there's still a gap in the market that needs to be filled; There remains a lack of affordable and mid-market housing.
2017, The Year of the Renter - The market will continue to favor tenants as the influx of inventory is slowly absorbed. We’ve seen rents dip marginally across the board and we expect concessions will continue to be offered even as we move into Spring.
Room for Growth - Expectancy of NYC's population to reach 9 million by the year 2040 reflects that NYC remains a highly desirable city and although the absorption rate has slowed down, the outlook remains strong for the NYC multifamily market.
Can you spot the members of our team in the photo?
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Wynson Ng is a proud member of The Vigon Team at Citi Habitats and Tech enthusiast living in New York City.
To contact Wynson, call:
(347) 422 3092
387 Park Avenue South, 4th Floor
Citi Habitats - (212) 253 - 5789