Right now, with the pandemic still in effect and the delta variant terrorizing the world, things seem uncertain for NYC real estate.
Small Businesses in NYC Facing Pandemic Altered Landscape
The city’s small businesses have faced a challenging 2021. International visitors are nearly nonexistent and domestic tourism has lagged behind pre-pandemic numbers. Right now, the small businesses of the city are facing an uphill climb for profitability.
However, players like CBRE, the world’s largest commercial real estate firm has some good news. They say that warm weather and loosened restrictions are renewing confidence in demand for retail. Landlords are more negotiable and deals are being closed for 14% less asking rent on average in New York City.
This could be a signal of NYC real estate resurgence which small businesses can take advantage of.
Declining Rent Creates New Opportunities
The decline in retail rents is creating new opportunities which can help to drive market activity. This is according to a new report by the Real Estate Board of New York. The report came out in June and revealed that asking retail rents have declined throughout the city.
The average asking price per foot throughout Manhattan retail corridors fell by nearly 37% year over year. Corridors which were located in different neighborhood with strong residential bases had seen less of a decline. Those dependent on tourists and office workers however saw a greater decline.
For example, in the Upper East Side, the rent had declined by 15%. Madison Avenue and Fifth Avenue corridors however, saw a decline of 25% during the same time period.
This shows that there is a chance for NYC real estate resurgence in the future.