New York’s Real Estate Market: Experts Speak

Posted on December 10, 2020

New York City is going through something that no one expected to happen anytime in the near future. An exodus.

Residents of NYC are leaving the city at unexpected rates and moving to the suburbs.

Why? To escape the population density amid this ongoing pandemic.

What this means for real estate – rental and home prices are sharply declining in an attempt to pivot to cover these losses.

The forces behind this contraction are simple: migration and demand contraction. Active listings throughout all five boroughs are up 53.2% over last year. Not surprisingly, this is affecting multiple players in the real estate market. This trend is working its way up the ladder from renter to owner, to landlord and developer- eventually reaching the banks that hold the loans.

Though seemingly dismal, there are some bright points on the horizon. This is largely due to large tech investments. Google, Amazon, Facebook, and Microsoft have all recently bought large quantities of office space in the city. Even TikTok recently purchased an empty space on Times Square. These big players know the same secret we do.

When they sell, we buy.

Investments at this time will inject cash into the market, bring jobs and the professionals who come with them – who will need places to live – and will lay the groundwork for the next generation of NYC land- and property-owners.

We believe that with positive signs like these, real estate investment in New York City will rebound quickly.

More CGI+ News & Press

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

CGI+, the investment and development firm founded by Gidi Cohen, has filed updated plans for a major apartment complex in central Hollywood. The project would be located at 1830 North Cahuenga Boulevard, at the corner of Cahuenga and Franklin Avenue, a prime Hollywood location a few blocks north of the Hollywood Walk of Fame.

read more
Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

The last year has not been easy for the head of a commercial real estate company. Inflation and the Fed’s response, as well as trends that emerged from the pandemic, have clearly had an impact on the industry across all of the sectors. Besides the effect of, say, ongoing remote work on the beleaguered office asset class or the slowing pace of rent increases in multifamily, these executives have also had to navigate an increasingly difficult capital markets environment. I have some bad news for this group: the near-term future doesn’t look any easier. Enter our selection of Best Bosses this year. This year’s picks were made at least in part based on their resiliency and ability to position their companies for future growth, whenever that might occur. We are confident these strengths will see them through what could be choppy waters ahead.

read more