Bell Environmental is a proud to work with the owners and managers of Class A Office Buildings among our client base. We serve as a resource to help keep their properties pest free so their clients have the best quality experiences. We also collaborate with BOMA NY as part of our work to be part of the discourse of business and market strategies that affect their operations and transaction values. Bell recently moderated a panel of two experts in NYC’s Commercial Real Estate: Avison Young’s James Nelson and Scott Singer on the topic The State of the Market and Outlook for New York City Commercial Real Estate.
June 2023 is an unusual time in a changing real estate market. Our conversation was surprisingly upbeat about the prospects for NYC CRE and gave indications of the players who were finding opportunities in the City.
There are concerns about:
• 26 Empire State buildings worth of empty real estate in NYC
• Empty workspace that exceeds office space in all of Houston and Dallas-Fort Worth combined.
• 26% vacancies in the Financial District and 20% vacancies rates in Midtown
• And Bloomberg News is predicting that property values may fall 50% from 2019 in line with Philadelphia and Washington, though not as troubling a fall as LA’s 55% and SF’s 60%
NYC has been through King Kong, The Staypuft Marshmallow Man, and perpetual NY Mets underperformance – but never a pandemic followed by a shift to work from home and the Fed propelling interest rates from 0 to 5.25% to curb inflation.
Avison Young said the deals are still getting done and discussed which types of transactions were coming to fruition. While interest rates while are high vs the absolute bottom set by the Fed they are in the middle of the range of historic norms, and that creative players always find ways to reinvent and reinvest in NYC real estate.
For a full recap of the discussion, read Connect CRE’s article. And to get to know and work with an expert group of helpful and really nice brokers, reach out to James Nelson, Scott Singer, and Avison Young’s Capital Markets Team.
Bell Environmental Services solves pest problems for commercial customers in the New York Metro Region using innovative technology and environmentally sound methods. For 60 years, Bell has provided strong customer service and protection from insect, rodent, and bird problems to keep clients happy and fulfill LEED, WELL and ESG goals.