Jul 13, 2017
One of the top stories of the past week was news from a report published by Douglas Elliman that prices for Manhattan real estate are at an all-time high. In the second quarter of this year, apartments sold for an average price of $2.19 million, an 8% increase from last year, and the median sales price also hit a record, up 7 percent to $1.19 million. The total number of sales jumped 15 percent compared with last year.
Despite soft sales in the second half of 2016 and an uneven start to the year that led many to predict a slowdown at the high end, sales in Manhattan showed surprising resilience in the second quarter, this according to CNBC.
While homes were sitting on the market slightly longer, inventory fell modestly. The author of the report believes that the strong sales and prices were driven by two factors: more realistic sellers and continued pent-up demand from buyers who held off purchases in 2016. Condos — especially new condos — continue to fuel the rise. The average condo sales price jumped 13 percent over the same quarter last year, to $3.12 million. The average sales price for new condos jumped 7 percent to $4.7 million.
Shifting to hotel news, New York City’s average hotel room rates slid 11 percent over the past three years as the city has grappled with an influx of new supply and increasing competition from short-term rental platforms like Airbnb. And by one measure, profits were down roughly 23 percent last year.
The average nightly room rate was $224 during the first quarter, down 11 percent from the average of $252 per night in the first quarter of 2014, the New York Post reported. The culprit, in part, is a flood of new rooms developers have built. The number of hotels in the city has grown 55 percent since 2008 to 634 properties and 115,000 rooms, according to the hotel-research firm STR.
As the new hotels come to market, owners are more willing to push rates lower in order to keep the properties at higher occupancies. Occupancy rates are in the mid-80 percent range, which is one-third higher than the national average, which is in the mid-60 percent area, according to CBRE.
Hotel revenues dipped for the fourth consecutive winter to a record low earlier this year, and experts are projecting that metrics may turn positive for the first time next year, this according to the Real Deal.
In coworking space news, Regus plans to launch its co-working concept called Spaces in Manhattan at RXR Realty’s Helmsley Building, where the executive-suites company recently inked a 55,000-square-foot renewal. Spaces, Regus’ answer to the co-working giant WeWork, has 35 locations already open worldwide and another 28 scheduled to open in the near future, according to the company’s website. In New York, the sole location is at the Falchi Building in Long Island City, where Regus signed a 34,000-square-foot lease in 2015.
The company’s been a longtime tenant at RXR’s Helmsley Building at 230 Park Avenue near Grand Central Terminal, and when its lease came due, Regus took the opportunity to reposition its space.
As part of the 15-year deal, Regus is relocating from the building’s 10th floor to space on the third and fourth floors, and will enjoy a private entrance on Vanderbilt Avenue.
Asking rent for the space was in the low-$80s per square foot, this according to the Real Deal.
Shifting to teh high rise luxury market, with massive condominiums, private elevators and a 100th-floor ballroom that overlooks Central Park, Gary Barnett and Extell Development if looking to lure the world’s richest to their ambitious $4 billion Central Park Tower. Although the building at 217 West 57th Street, slated to be the tallest residential tower on Earth and most expensive in NYC, won’t be completed until 2019, the Real Deal discovered the building’s floorplans and the price breakdown for each unit. According to filed documents, 20 of the 179 condominiums in the building have a price tag of $60 million and above. The most expensive unit listed is a $95 million penthouse that contains four bedrooms, a 2,000-square-foot terrace and an outdoor pool.
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