Foreign capital has always influenced the New York City market. They love it. Once while walking a foreign investor through the Upper East Side, we passed two identical buildings: the first, 100% occupied and the other, vacant with boarded up windows. The out-of-town investor looked at the vacant building and said "maybe I should buy that one..." assuming a discounted price. This is one of the nuances of the NYC multifamily market: vacant buildings are often more valuable than occupied because they are not encumbered by leases. As one client…

The dynamics of the rental market in New York City have changed. The New York Times, Wall Street Journal, Real Deal, and others are running articles about the shift in rents. Let's take a deeper dive... How did we get here? Market rents in NYC have risen dramatically over the past five years. In many cases, year-over-year increases were in the double digits as owners and developers realized a very strong demand from millennial renters who "paid up" for high-quality renovations and building amenities.

Welcome to 2017! This year we look forward to the growth that (hopefully) comes from a more favorable business environment. The past 12 months have been marked by uncertainty as prices, rents, financing, equity, and government regulations all changed. We hope the year ahead will bring resolution where needed--and looking forward--we focus on three categories: Rates, Rents, and Regulation. These are the "Three R's of 2017." Rates: Interest rates have started to rise and indications are such that we should anticipate moderate future increases. To hold its value, a property's…

2016 was a transitional year in many ways for the New York City multifamily business. Financing, buyers' mindsets, pricing, rents, and other aspects of the business changed. To gain a better understanding of our clients, we surveyed several thousand owners and investors about various market topics. I think you'll be surprised at some of the answers I'll share with you below. Are you Buying Next Year? Many investors pointed out that we are in the late stages of a market cycle, and are therefore more selective about what they purchase.…

What does the election mean for New York City Multifamily owners? Will it impact values? Will rents go up or down? Our research team at Marcus & Millichap released a special report highlighting the impact that Trump’s presidency will have on multifamily owners.  The election results may redefine the playing field and it is important to understand the implications involved in this governmental change.