The investment outlook for New York City retail isn’t surprising when you look at the sector’s fundamentals. Vacancies are up 40 basis points year over year, according to Marcus & Millichap, while average asking rents dropped by 2.1% in the same time period.
Accordingly, Marcus & Millichap’s new report on New York retail notes, “Declining transactions and overall dollar volume of activity are becoming more apparent, particularly for properties presenting challenges due to tenant mix or lease considerations. This dichotomy has created a multi-tiered investment marketplace, with well-performing assets garnering multiple offers, while struggling centers receive highly discounted offers.”
There are bright spots to be found, and investors are gravitating toward them. “Higher potential returns in Queens, the Bronx and Staten Island are still drawing considerable interest from buyers,” according to Marcus & Millichap. “Broadly, more than 200 basis points of extra yield can be obtained in these boroughs.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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