{"id":36968,"date":"2020-01-22T15:06:00","date_gmt":"2020-01-22T13:06:00","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=36968"},"modified":"2020-01-22T15:06:07","modified_gmt":"2020-01-22T13:06:07","slug":"cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/01\/22\/cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight\/","title":{"rendered":"CRE Pros\u2019 Predictions for 2020: Development in Brooklyn &#038; Queens, Hudson Yards Takes Spotlight"},"content":{"rendered":"\n<p>Last year was great for markets all around the world. Although the trade war and tensions in the Middle East may have put a bit of a damper on stocks, real estate prices continue to reach all-time highs. We surveyed New York City\u2019s commercial real estate (CRE) professionals to determine how 2020 might look after a stellar 2019.<\/p>\n\n\n\n<p>Highlights:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Office occupancy and lease rates are forecasted\nto remain mostly flat, if not decline slightly.<\/li><li>New developments like Hudson Yards will continue\nto draw tenants from Midtown.<\/li><li>Brooklyn is expected to draw the most\ndevelopment, followed by the Bronx and Queens.<\/li><li>The CRE market is cautiously watching the\nregulations in the residential market, which may slow investment.<\/li><li>Many see transaction volume decreasing in 2020\nas Brooklyn and Hudson Yards cool off.&nbsp; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Occupancy_Lease_Rates_to_Remain_Flat_or_Even_Decrease\"><\/span>Occupancy &amp; Lease Rates to Remain Flat or Even Decrease<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"infogram-embed\" data-id=\"c7d4665c-0429-499a-b33e-80432beed3b1\" data-type=\"interactive\" data-title=\"survey 3\/4\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p>Only 19% of respondents predict that occupancy will increase in Manhattan, and 44% predict lease rates in all boroughs to increase. Furthermore, new developments will continue to draw tenants from other neighborhoods.<\/p>\n\n\n\n<div class=\"infogram-embed\" data-id=\"389f7f87-2069-4d55-9187-54cb2748711c\" data-type=\"interactive\" data-title=\"survey 1\/4\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p>\u201cHudson Yards will\nbe the new center of commerce in NYC,\u201dsaid District Leasing,\nInc.\u2019s Dylan Murphy.<\/p>\n\n\n\n<p>Furthermore, 58% of respondents also expect transaction\nvolume to decrease in 2020 compared to 2019, citing high prices, a low number\nof assets for sale, and uncertainty in regulations. Other respondents also\nbelieve high prices in Midtown will push some tenants to Brooklyn and Queens\nneighborhoods \u2013 like Long Island City, where rents are lower. <\/p>\n\n\n\n<p>\u201cI would venture\nthat this number will stay relatively flat,\u201d one respondent stated. \u201cThere may be higher demand for class B\nand C office space, but occupancy will likely depend on the landlord\u2019s ability\nto update older spaces and compete with new construction in the same geographic\nmarkets.\u201d <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Political_Uncertainty_May_Trickle_into_Office_Market\"><\/span>Political Uncertainty May Trickle into Office Market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The political climate is shaking up foreign investments. In\nfact, 63% of respondents believe there will be a shift in where and how foreign\ncapital is deployed in the NYC real estate market, citing the current\nadministration\u2019s foreign policies and changes in regulations for the rental\nmarket, among others. <\/p>\n\n\n\n<p>\u201cNew York City is\nrobust and the CRE market within New York City will continue to grow,\u201d said Bestreich\nRealty Group Associate Toby Waring. \u201cThat\nbeing said, if the similar laws that have been brought upon rent-stabilized\nproperties impact leasing and free-market apartments, velocity will undoubtedly\ndecrease because there will be a huge \u2018gap\u2019 between what properties are\nactually worth and what owners think they are worth.\u201d <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Development_Focus_Shifts_to_Brooklyn_Queens_Bronx\"><\/span>Development Focus Shifts to Brooklyn, Queens &amp; Bronx<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"infogram-embed\" data-id=\"224635c1-a663-498a-a727-1fe2967d9874\" data-type=\"interactive\" data-title=\"survey 4\/4\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p>Of the five boroughs, 41% of our respondents see Brooklyn\ndrawing the most office development in 2020, followed by the Bronx with 36% of\nthe responses and Queens with 32%. <\/p>\n\n\n\n<p>\u201cBronx still has\nland that can be developed at reasonable prices,\u201dsaid Forest\nPark Properties Principal Broker, Raymond Mordekhai<em>. <\/em>\u201cQueens will continue to expand its core\ndevelopment areas.\u201d <\/p>\n\n\n\n<p>However, Manny Kabiri of Capital Real Estate Advisors, pointed\nout, \u201cSome areas are not easy to\ndemolish and rebuild because of city\/state regulatory policies and outdated\ninfrastructure. Hudson Yards will have the most development in years to come.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Opportunity_Zones_Coworking_Spaces_May_Need_More_Exploration\"><\/span>Opportunity Zones &amp; Coworking Spaces May Need More Exploration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Opportunity zones aren\u2019t understood well enough to play a\nmajor role just yet. However, most respondents believe that the need for them\nis there, and that the investments will follow. The Bronx and Queens were the\ntwo boroughs that many believe will capture most of the attention from these\nzones.<\/p>\n\n\n\n<p>Coworking projections are relatively split with 54% of\nrespondents seeing them expanding further in 2020, while 44% say they will cool\noff. Robin Abrams, vice chairman at Compass, is in the latter group. <\/p>\n\n\n\n<p>\u201cThere is a lot of\nthat space available that needs be absorbed,\u201d she said. \u201cI don&#8217;t see a lot of\nnew cowork space being developed or increased demand, as demand has stabilized.\nThere will be some demand that can be accommodated.\u201d <\/p>\n\n\n\n<p>Even still, optimism exists. <\/p>\n\n\n\n<p>\u201cCo-working spaces\nare great with the amenities and flexibility of lease terms,\u201d said\nanother respondent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Declining_Retail_Offers_Options_for_Office_in_2020\"><\/span>Declining Retail Offers Options for Office in 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Retail spaces offer interesting avenues for offices.<\/p>\n\n\n\n<p>\u201cMore traditional\noffice tenants \u2026 will rent secondary retail space on side streets on East Side\nand West Side instead of office space,\u201d said one respondent.<\/p>\n\n\n\n<p>And, Abrams added, \u201cFor\nretailers that can predict their sales, it is a tenant\u2019s market, with ability\nto lock in long-term at attractive rents.&nbsp;\nEcommerce brands opening brick-and-mortar stores and international\nbrands have a lot of opportunity, as do national chains that may want to expand.\nEven if the trend is for smaller or fewer stores, there are market areas where\nretail is prevalent and successful.\u201d\n\nOverall, expectations of rising prices and\ndevelopments have been tempered. Trade war dynamics that are shaking up foreign\ninvestments may subside or be replaced by other international players. The\npolitical climate in NYC may still affect the commercial real estate industry,\nbut the mood appears to be cautiously optimistic for 2020.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last year was great for markets all around the world. Although the trade war and tensions in the Middle East may have put a bit of a damper on stocks, real estate prices continue to reach all-time highs. We surveyed New York City\u2019s commercial real estate (CRE) professionals to determine how 2020 might look after&hellip;<\/p>\n","protected":false},"author":63,"featured_media":36986,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[376,328],"tags":[],"class_list":["post-36968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-new-york-commercial-real-estate","category-new-york-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CRE Pros\u2019 Predictions for 2020: Development in Brooklyn &amp; Queens, Hudson Yards Takes Spotlight - PropertyShark Real Estate Blog<\/title>\n<meta name=\"description\" content=\"Last year was great for markets all around the world. 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We surveyed New York City\u2019s CRE professionals to see what may be in store for 2020.","og_url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/01\/22\/cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight\/","og_site_name":"PropertyShark Real Estate Blog","article_published_time":"2020-01-22T13:06:00+00:00","article_modified_time":"2020-01-22T13:06:07+00:00","og_image":[{"width":1920,"height":1280,"url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2020\/01\/CRE-Predictions2020_1548503075-1.jpg","type":"image\/jpeg"}],"author":"Patrick McGregor","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Patrick McGregor","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/01\/22\/cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight\/","url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/01\/22\/cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight\/","name":"CRE Pros\u2019 Predictions for 2020: Development in Brooklyn & Queens, Hudson Yards Takes Spotlight - PropertyShark Real Estate Blog","isPartOf":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/01\/22\/cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight\/#primaryimage"},"image":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/01\/22\/cre-pros-predictions-for-2020-development-in-brooklyn-queens-hudson-yards-takes-spotlight\/#primaryimage"},"thumbnailUrl":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2020\/01\/CRE-Predictions2020_1548503075-1.jpg","datePublished":"2020-01-22T13:06:00+00:00","dateModified":"2020-01-22T13:06:07+00:00","author":{"@id":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/#\/schema\/person\/c4b8bd92d517f49f64d90afedab8ec29"},"description":"Last year was great for markets all around the world. 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He also holds an MBA from Thunderbird School of Global Management. Patrick was previously a commercial real estate analyst at Yardi Matrix for five years. His work has appeared in the New York Times, Bisnow, GlobeSt, The Real Deal, Business Insider, The Denver Post, The Motley Fool, and more.","sameAs":["patrick.mcgregor@yardi.com"],"url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/author\/patrickmcgregor\/"}]}},"jetpack_featured_media_url":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-content\/uploads\/sites\/98\/2020\/01\/CRE-Predictions2020_1548503075-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/36968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/comments?post=36968"}],"version-history":[{"count":9,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/36968\/revisions"}],"predecessor-version":[{"id":36985,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/posts\/36968\/revisions\/36985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/media\/36986"}],"wp:attachment":[{"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/media?parent=36968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/categories?post=36968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/wp-json\/wp\/v2\/tags?post=36968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}