Today there are no shortages of opportunities to invest in, from the safest bonds to the riskiest cryptocurrency. Real estate presents itself as a somewhat safe option, still susceptible to market trends but always needed. Commercial real estate is just one subcategory of this market, and has many complexities to cover.
To start, there is the undeniable impact COVID has had on the market. Office vacancies are up, office hours are down, and rates are up. This has led to commercial property prices dropping 13% from even 2022 at its peak. Yet this has not affected all areas or specific markets. New York still sees its volume growing. Most specifically, luxury retail continues to grow year after year.
In terms of commercial real estate, there is retail, multifamily, office, mixed-use, industrial, hotel, land, and special purpose. Many of these have subcategories, and each must be investigated individually. Investment opportunities are not one fits all, one must find out if each fits the individuals’s purposes.
So for those looking at New York office space, things aren’t great – or are they? The market is uncertain, different properties are more highly valued, and sales are dropping. Although for those looking at data centers, things are looking great. The tech industry isn’t going anywhere, instead it demands more space year after year. It’s up to the individual to assess the risk versus reward of any potential commercial properties.