New York City was named one of 10 commercial real estate markets to watch in 2013 by PricewaterhouseCoopers US and the Urban Land Institute.
According to Emerging Trends in Real Estate 2013 report, NYC real estate is anticipated to recover in 2013, as modest gains in leasing, rents, and pricing will expand across U.S. markets from across the nation and improve prospects for all property sectors.
Survey respondents indicate that recent job creations combined with continuous construction of brand new buildings should have a positive effect on the vigorous demand for apartments as well as the housing sector. Improving fundamentals should strengthen recent appreciation, and assist with rents and net operating incomes.
“With the outlook for commercial real estate continuing to improve in 2013, investors are expected to allocate substantial sums of capital to the real estate asset class, according to our survey respondents,” said Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC. “As yield in bonds and other financial instruments tighten in a still volatile market, commercial real estate’s income producing and total return attributes offer investors potentially attractive risk-adjusted returns.”
Stephen Blank, Urban Land Institute (ULI)’s senior resident fellow for real estate finance, reassures investors to keep in mind of recent progress made in the industry as they prepare for a slow but steady recovery. “Those who are patient and willing to rethink their expectations and adapt to market realities are expected to come out ahead this year,” he said.
New York City recently crept up to the number 2 spot on the list of best investment prospects, tailing closely behind San Francisco, but just above San Jose, California and Texas.
What are your predictions for NYC Real Estate in the New Year?