Cushman & Wakefield’s Jonathan Squires, Director in the New York Middle Market Investment Sales Group, recently participated in Bisnow’s Bronx State of the Market panel to discuss current strengths and vulnerabilities of the Bronx market.
Over the past couple of years, attention in the Bronx has started shifting away from multifamily properties and towards land and industrial real estate, with the industrial sales market seeing large gains. As more Bronx clients are requesting that marketing efforts be tailored toward specific buyers and operators, many multifamily properties containing stabilized units are now being shopped off-market, whereas past marketing strategies consisted of getting multifamily properties a high amount of exposure.
“We’re hearing investors who normally purchase rent-regulated multifamily buildings are either looking to pay a lot less for them or move into other asset types,” Jonathan told Bisnow. “We’ve probably seen the most demand for both industrial and development sites.”
Because the Bronx has the highest percentage of rent-regulated units across the boroughs, New York’s new rent regulations could be the reason demand for industrial and development sites has shot up.
Panelists agreed that, while the Bronx is still attractive for middle-class New York renters, development is currently the strongest asset type in the Bronx and, overall, the borough should remain a strong investment market.
About Jonathan Squires
Jonathan Squires is a Director in the New York Middle Markets Investment Sales Group of Cushman & Wakefield where he focuses on the Bronx. He has worked in the Bronx and Upper Manhattan since 2001 and has been involved in thousands of various real estate transactions.