What Investors Look For In NYC Urban Real Estate Development
Strong Housing Market Demand and Low or Limited Housing Supply
Real estate investors look to invest in urban real estate that has a high demand. If this is a residential development, then real estate investors want to see a strong buyers or rental market. If there is a lot of demand for penthouses in Manhattan, then investors will be more than happy to put their funds into a penthouse development in Manhattan. The strong demand ensures that there is already a market in place for the penthouses. If demand is really high or strong, then the penthouses can be sold out or leased out ahead of time.
Desirable Locations for Commercial Properties
For commercial properties such as office or retail space, real estate developers want the development to be in a highly desirable location. A desirable location can include being located near a park or restaurants, having city views and being located in a high traffic area with lots of potential customers and walk in traffic. Being in a desirable location will help increase the demand for office and retail space in that project. It will also help the developer get a higher price when they are leasing out or selling the property. Higher prices which stem from higher demand will generate bigger profits and returns on urban real estate projects in New York City.
Luxury and Quality
New York City always has a strong demand for luxury apartments and high quality office and retail space because celebrities, high net worth individuals and professional athletes love to settle down here. This is why real estate investors want to see real estate developments that are luxury developments or commercial and retail developments that are of a high quality. For example, tennis superstar and former number one ranked player, Novak Djokovic recently bought two luxury condominiums at 565 Broome SoHo. This is a luxury condo development that will be completed in 2018. Fellow women’s tennis superstar, Caroline Wozniaki also bought two luxury apartments at the 15 Union Square West development that overlooks Union Square in 2011.
Developers of Urban Real Estate in New York City
Thor Equities LLC (owned by Joe Sitt) and Urban Development partners are two NYC based real estate development companies that develop commercial, residential, hospitality and retail real estate development projects. Both firms develop mixed use properties, which is now a growing trend in urban real estate development.