NEW YORK CITY—In a city ripe for new commercial properties, some of the area's most prolific developers have an enviable problem: where should they focus next and on what type of property? Slated to speak at RealShare New York on Oct. 14th, executives from three such firms tell GlobeSt.com where they're looking.
“What I've been focused on is what we're calling emerging submarkets in the region,” says RXR Realty EVP Seth Pinsky. “In areas such as Yonkers, New Rochelle and, on Long Island—Hempstead, Glen Cove, and Huntington Station—we either are partnering with local developers who have secured strategic sites or we're working with the community and serving as master developers.”
Further, he adds, “We've acquired about one million square feet of office space in Greenpoint, Brooklyn and Long Island City. Most of the development there is occurring on the residential side and we believe there's significant demand for commercial space for companies that are priced out of Manhattan or those who want to be near their workforce. We're also looking at ground up residential [in these areas] We've explored many of the nooks and crannies and hope to announce something soon.”
For Hidrock Properties, Brooklyn and two Manhattan submarkets—Midtown and Downtown—are the areas of focus. Now at work on a development in Park Slope, near Prospect Park, and a residential rental building in Brooklyn's Midwood section, Hidary CEO Abie Hidary sees great potential in the borough that already has exploded.
“Brooklyn is family friendly with great neighborhoods, schools and nice parks,” he says. “Park Slope in particular is a great family location and Prospect Park has great views.”
In Lower Manhattan, the firm is developing a Courtyard by Marriott hotel at 133 Greenwich St., near the World Trade Center redevelopment site and across the street from the National September 11th Memorial and Museum. “We love Downtown,” Hidary declares. “A lot of the financial firms that were on or around Wall and Broad Streets have shifted to Broadway, Brookfield Place and the Word Trade Center.”
The firm also is bullish on West Chelsea, having purchased 12-14 E. 48th St. with plans for a residential conversion. We think Midtown is under recognized and we love West Chelsea. Everyone wants to be in Tribeca, the Flatiron District, the Upper East Side or Upper West Side but Midtown has great restaurants and retail, plus a lot of office space is coming to West Chelsea—including Hudson Yards—and Google keeps taking more space there.”
Muss Development is doing work in four out of the five boroughs and is bullish on the entire city. “For the market in general, says principal Jason Muss. “We see slow but steady continued growth in commercial, retail and residential rents. The expansion of the city's population, stock of office space and tourist base will only continue over the next several years, which will help every sector grow. The city's housing stock is still incredibly old and there is a need for every apartment being built.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
