New York City’s economy has never really been reliant upon any one industry for its well-being. The city is a global capital for finance, insurance, media, advertising, theater, and fashion. Now, the city can add “technology” to the list of industries supporting its diverse economy after recent Google and Amazon announcements. CNN agrees that New York City has put Silicon Valley on notice, and noted VC Fred Wilson is expecting that the city will become one of the most important tech regions in the world.
A few journalists asked the Compound team what we think these announcements will mean for real estate prices in NYC. Here’s what we said in their stories:
Even half of Amazon's HQ2 is a huge deal for DC area, New York (Washington Examiner)
HQ2 In Long Island City? These Neighborhoods Will See The Most Growth (Forbes)
Amazon's Long Island City HQ may give it dominion over a key NYC sector (NY Biz Journal)
NYC real estate brokers are already telling us that their phones are ringing off the hooks. Real estate website Redfin saw searches for Long Island City increase by 659% last week.
Despite all this good news, the New York City residential real estate market is still soft, as a few news outlets highlighted recently. (Read: it’s a good time to consider investing.)
Individuals are lowering asking prices, including everyone from Keith Richards to Anthony Bourdain’s estate (NY Post)
Manhattan Home Prices See Largest Drop Since Recession (Streeteasy)
New York City Home Discounts Are Everywhere (Bloomberg)
The city is seeing its biggest wave of new residential development in a decade (Wall Street Journal)
A few other things you might want to know about New York City real estate right now:
Everybody loves a good Zestimate, so why should houses have all the fun? Automated valuation models (AVMs) have struggled to evaluate New York City residential real estate accurately, so it will be interesting to see if an effective model can be built for office space valuations. The Commercial Observer reports that Knotel and CompStak Team Up on Zestimate for Offices.
We watch WeWork’s evolution with intrigue. Last week, they announced a new Austin-focused real estate investment fund and foray into the Philippines and Vietnam. Meanwhile on the home front, we’ve heard rumors that some of New York City’s biggest landlords are looking to sell buildings where WeWork is a major tenant. You heard it here first.
The Bronx, the borough sandwiched between Manhattan and Westchester suburbs, is one of the last affordable areas in New York City. An influx of new buyers see the appeal and we’re watching it carefully.
Compound is and always will be your eyes and ears on the ground here in New York City, because real estate is inherently a local business.