New Development Pipeline in NYC on the Rise
- Jun 25, 2015
New York—In a new report by Halstead Property Development Marketing, data shows that New York City’s new development pipeline numbers for the last year is on the rise.
“We are seeing a healthy pipeline, although not the same number of units that we saw in the early part of 2000 and mid-2000s or what we’ve seen historically in building booms in the past when tens of thousands of units were coming to market in New York City,” Stephen Kliegerman, president of HPDM, told MHN. “What we are seeing is a healthy pipeline of higher-end product that from a design aspect and amenity aspect is cutting edge and raising the level of the term ‘luxury’ in New York.”
The luxury offerings include everything from hotel-style services to swimming pools, wine rooms, golf simulators and full-service branded gyms.
“Parking in many places has been added, which is a big benefit to a building when you can do that,” Kliegerman said.
According to the report, over the past year, nearly 3,000 new development units have sold in Manhattan, while more than 500 new development units have sold in Brooklyn.
“Brooklyn is a terrific borough with tremendous history and culture, wonderful parks and amazing access to public transportation,” Kliegerman said. “Many areas of Brooklyn have beautiful views of the Manhattan skyline, which is great. With 44 unique neighborhoods, I think people are really starting to appreciate its unique neighborhoods plus the price point is more attractive than Manhattan.”
Hot neighborhoods in Brooklyn to keep any eye on include Dumbo, Downtown Brooklyn, Red Hook, and Greenpoint.
The report not only highlights the robust inventory around New York City, but also shows a very high absorption rate—250 units per month in Manhattan and 44 units per month in Brooklyn.
One development trend across all of New York are residences are getting a little larger, with more square feet in bedrooms and a more luxurious layout than what may have been offered in the past.
“Another trend we are seeing is named designers—not just named architects,” Kliegerman said. “A trend towards higher-levels of finishes in the kitchens is also happening.”
According to Kliegerman, development expectations should follow what has been happening of late.
“I think that inventories will continue to compress as demand remains high and a number of developable sites is diminishing,” he said. “A year from now we will be continuing to talk about low inventories and higher prices and still be talking about Brooklyn and pushing towards the $2,000 per square foot mark.”