On the NYC Real Estate Front| Residential Real Estate, Commercial Real Estate | 12 Jun 2008 11:00 PM |
 |
| On the NYC Real Estate Front by Reggie Middleton |
  |
The NYC commercial and residential market is doing exactly what I told you it would do, drop. From the Real Deal, our local RE rag:
Manhattan office vacancies rise
The Manhattan Class A office vacancy rate rose to 6.9 percent in May, up from 6.4 percent in April and 5.3 percent at the beginning of the year, according to data from brokerage Colliers ABR. After JP Morgan and Bank of America added large blocks of office space Midtown's vacancy rate increased to 7.1 percent. The Downtown vacancy rate increased to 6.3 percent from 5.9 percent in April, as Goldman Sachs put its offices on the market in preparation to move to a new tower in Battery Park City. Midtown South saw improvements: Its vacancy rate fell to 9.9 percent, the first time it's been below 10 percent since January. TRD
NYC's delinquency rates rise
The 60-day mortgage delinquency rate rose in all five boroughs in the first quarter, almost doubling to 2.7 percent compared with last year, according to TransUnion.com. Queens had the largest increase of 92 percent. Brooklyn, the Bronx and Queens had delinquency rates higher than the national average of 3.2 percent. New York State had the 28th highest delinquency rate in the country. TransUnion.com expects the national delinquency rate to reach 4 percent before the year ends. [Crain's]
Foreclosed homes ravage Bronx
Bronx residents are angry that crumbling foreclosed homes are attracting squatters and decreasing the value of their properties. Homes within 500 feet of one foreclosed home can knock off 1.8 percent of the sale prices of surrounding homes, according to data from New York University's Furman Center for Real Estate and Urban Policy. Three to five foreclosed properties can take 2.8 percent off surrounding homes, and 20 or more foreclosed homes in a neighborhood can decrease sales by 3.7 percent, the center said. [Post]
Nostalgia for old Harlem
As Harlem faces gentrification and rezoning, older residents miss their old familiar neighborhoods. Bodegas and dollar stores are becoming a thing of the past in some areas as $1 million condominiums rise next to tenements. A $300 million shopping center is replacing an abandoned wire factory. The average price for a new condo in Harlem is $900,000, although the average household income remains less than $25,000. [NYT]