Investment Strategy

In spring 2020, NYC was the national epicenter of COVID-19. And while people and the city are starting to recover, the economic and real estate impacts of the pandemic are still being felt. All property operators, sellers, and buyers are affected by recent changes and have questions about how to navigate the obstacles and opportunities of the real estate landscape right now.

In spring 2020, NYC was the national epicenter of COVID-19. And while people and the city are starting to recover, the economic and real estate impacts of the pandemic are still being felt. All property operators, sellers, and buyers are affected by recent changes and have questions about how to navigate the obstacles and opportunities of the real estate landscape right now.

The rental market in NYC is changing. This year, we will witness a 59% reduction in the amount of new rental supply delivered into the market compared with 2019. This is a 69% reduction compared to 2018!

When I was writing The Scene in 2019: What to Expect in the NYC Multifamily Market last year, there was significant uncertainty in our industry. In the first half of the year, we weren’t sure what was going to happen with New York’s rent reform laws.

While we all knew the laws were coming, about 90% of owners we surveyed felt the laws were worse than expected. The industry has become much more complex. These laws have disrupted the market and your world as an investor might feel chaotic right now.

Living in NYC will be dramatically reshaped. The "2019 Rent Reform Act" immediately implements state-wide rent caps on rent stabilized apartments and more strict landlord controls, as the government vastly increases its power over these buildings. The political change which allowed the bill to pass, was created when Democrats took control of the New York State Senate, which has been typically held by Republicans. In a way, this change is the result of “anti-trump” votes that flipped those senate seats in the mid-terms of 2018. This effectively created a 1-party…

All participants in commercial real estate are hunting for a competitive advantage. Whether you are an investor, broker, or other player, you have probably explored technology to improve your success. And technology is a great tool. But, there is much more to the story. When talking about the future, you may be surprised to know that Jeff Bezos advised us to “focus on what doesn’t change.”

Current NYC Rent Regulation laws are set to expire June 15th, 2019. In order to make good on their promises to constituents, these lawmakers have introduced several new pro-tenant bills.

After an extended period of higher rental supply in New York City, a series of interesting shifts are occurring. The lack of new construction, high land and construction costs, and historical trends show us that this era of excess supply and falling rents is coming to an end.