Back in 2006, the New York City Planning Department estimated that the population of the city would grow by 14.6% from 2000 to 2030. Last year the city took in more new residents than it lost for the first time in decades, which put the city’s targets back in focus and back on track. With more than 8.3million people currently residing in NYC, the city will likely house 1.1million more residents in 2030 than 2000.
For many this population explosion represents a huge challenge. For real estate investors it represents enormous opportunity. Any time an area is experiencing massive growth, particularly in a place as vibrant and ever changing as New York City, there are opportunities on both the buy side and the sell side. By now everyone is familiar with the renaissance that has been underway in Brooklyn for the better part of the past ten years, and even a bit longer. Investors have already begun seizing on the fact that growth in Brooklyn means growth in neighboring areas once businesses and residents are maxed out or priced out.
Therefore, it should come as no surprise that Queens is hot. Red-hot. According to the census, the population of Brooklyn between 2010 and 2012 increased by 61,000. That’s pretty significant and deserving of the attention it has received. But for all of the hype about the Dodgers former neighborhood, Queens wasn’t that far behind. During the same period the population of Queens swelled by 42,000. Not too shabby for a county in its 4th century.
The bottom line is that New York real estate trends continue to be strong. One of the areas that we love is multi-tenant housing, particularly in Queens. Sovereign recently sold a multi-family house in Bayside, one of the fastest and most efficient transactions we have recently had. On the rental front, there is a clear desire to move to this part of the city, making the investment a comfortable one for buyers. From the seller’s perspective, depending upon his or her situation, there seems to be a great willingness to either cash out or roll over the sale into a 1031 exchange. This is the beauty of real estate investing in a market that is on the move but not yet at its peak.
Sovereign’s normal words of caution still apply when looking at multi-tenant or any real estate opportunity. Having cash ready to deploy into a hot market doesn’t mean you should take the first thing that comes along. It has to make sense for you. Likewise, if you’re holding property, don’t feel pressure to sell just because it’s happening all around. That’s why even though we move quickly on behalf of our clients, it’s always with an understanding of his or her objectives, tolerance for risk and full due diligence into the market.
Last point on multi-tenant housing in an area as mature as Queens – There are boards and regulations that must be understood. There is also a greater responsibility that comes from owning a place where people live as opposed to a triple-net commercial deal, for example. So if you’re in the market to either buy or sell multi-tenant housing, give us a call to go through your options so you can maximize not only your investment and your time.