Research Paper: New York Real Estate

Pages: 7 (2269 words)  ·  Bibliography Sources: 7  ·  Level: College Senior  ·  Topic: Urban Studies  ·  Buy This Paper

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[. . .] In addition, more parents are leasing apartments for their children, and some retirees are choosing Manhattan over traditional cities such as Miami (Toy, 2012).

Tourism continues to grow, and the development of new hotels in Downtown New York, including the W. And the Four Seasons, added 3,152 rooms in 2011 pushing hotel occupancy rate higher (Gregor, 2011). The robust development of Lower Manhattan's business and residential communities also created a greater need for places to eat and shop. Thus, an influx of new retailers and restaurateurs is now present to accommodate a range of budgets and enhance the ambiance of the neighborhood. Retailers such as Tiffany & Co., Hermes, BMW, Whole Foods, and Bed, Bath and Beyond now all operate in Downtown New York, as do attractive eateries such as Cipriani, Nelson Blue and The Grill Room. There are also five farmers markets offering fresh and organic produce, meat, fish and baked goods. The redevelopment of the World Trade Center site will further provide Manhattan with the kind of first class office space and retail, cultural and open space amenities the district is known for.

Future Outlook

Manhattan's office market is very likely to face a range of challenges in 2012. The economy has yet to settle into a steady recovery and is being tested by challenges in the global capital markets and the global debt crisis. There is still notable job loss in the financial services community which could create a spill-over effect to other sectors. For every financial service job eliminated, a loss of two other jobs is expected to occur in various support services across the city (Gong & Keenan, 2012). If, for example, half of the spill-over jobs lost are in the office sector, total office job loss could reach 20,000 employees. At an average of 250 square feet per employee, Manhattan could see a decrease of 5.0 million square feet of absorption. The potential is very real, although it is still too soon to determine what the true impact might be.

On a more optimistic note, the financial services sector has added over 20,000 jobs in the last 6 years and has seen major companies such as Google and Facebook establish regional centers in the city (Sederstrom, 2011). The attraction for such companies is the city's access to a large talent pool and venture capital. The city has also responded to the ongoing industry growth with its announced intention to create an engineering and applied sciences campus on Roosevelt Island (Gong & Keenan, 2012). Many are hoping that the growth of these new industries will offset the forecasted losses in the financial services sector in 2012.

There is also growth in tech companies, however, it is concentrated in the Midtown South market, not Downtown, where the financial service sector is dominant. Employees are being allocated less space for conducting their jobs in a newer trend as many organizations move from traditional office space to telecommuting (Malcata-Rebelo & Pinho, 2010). Technology enables this process and it continues to challenge the role of the office and the location in creating an effective workplace. Many companies are consolidating their workforce into smaller space depending of course on their growth projections. The overall impact on the office market is not encouraging. Many more jobs will be needed in the future to create historic levels of demand for office space.

Still, it is thought that new development will play a significant role in meeting future demand. New buildings with modern infrastructure are much better suited to creating the work environments that companies want (i.e., abundant natural light, efficient electrical and HVAC systems, etc.) (Sederstrom, 2011). There is also continuing interest in all the new development projects currently underway including the World Trade Center, Astor Place, Hudson Yards and upper Eighth Avenue. This is where true promise lies for New York and the borough of Manhattan.

References

1. Beauregard, R.A. (2005). The textures of property markets: Downtown housing and office conversions in New York City. Urban Studies (Routledge), 42(13), 2431-2445. doi:10.1080/00420980500380345

2. Brown, J.L. (2007). Demolition in Manhattan Gains Momentum. Civil Engineering (08857024), 77(8), 34.

3. Gong, H., & Keenan, K. (2012). The Impact of 9/11 on the Geography of Financial Services in New York A Few Years Later. Professional Geographer, 64(3), 370-388. doi:10.1080/00330124.2011.603654

4. Gregor, A. (2011). Demand for Office Condos Grows in Manhattan. New York Times. p. 6.

5. Higgins, M. (2012). Manhattan Home Prices Reported Steady. New York Times. p. 19.

6. Malcata-Rebelo, E., & Pinho, P. (2010). Evaluation and monitoring of office markets. Environment & Planning B: Planning & Design, 37(2), 305-325.… [END OF PREVIEW]

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New York Real Estate.  (2012, September 23).  Retrieved July 20, 2019, from https://www.essaytown.com/subjects/paper/new-york-real-estate/4451788

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"New York Real Estate."  23 September 2012.  Web.  20 July 2019. <https://www.essaytown.com/subjects/paper/new-york-real-estate/4451788>.

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"New York Real Estate."  Essaytown.com.  September 23, 2012.  Accessed July 20, 2019.
https://www.essaytown.com/subjects/paper/new-york-real-estate/4451788.