New York has long been a top choice for real estate investors, thanks to its strong economic fundamentals, diversified industry base, and reputation as a global financial center. With high wages and steady job growth, demand for both commercial and residential spaces remains robust. As we entered 2020, many top real estate investment firms continued to view New York as an attractive market.
Healthcare and technology sectors drive office space demand
The growth of New York’s healthcare and technology sectors is fueling demand for modern office spaces. Major expansions at hospital networks like Mount Sinai and tech giants opening new headquarters have absorbed much of the new supply coming online in districts like Hudson Yards.
Global capital still flowing into New York multifamily
Investors from Asia and the Middle East are still snapping up New York apartment buildings, betting on the city’s strong tenant demand and rental growth potential. Several marquee multifamily deals transacted in 2020 despite broader economic uncertainty.
Retail faces pandemic uncertainty but long-term potential
The retail sector is under strain due to temporary pandemic closures and accelerated e-commerce adoption. However, luxury brands and essential services are faring better. Well-capitalized investors can still find value in high-foot-traffic locations if taking a long-term view.
Infrastructure upgrades make industrial space attractive
Billions in planned infrastructure upgrades at ports, airports, and rail yards are drawing investor attention to New York’s industrial market. Multistory warehouse buildings near transportation hubs are leasing rapidly.
Backed by its diverse economy and skilled workforce, New York retains strengths that are attractive to major real estate investors, despite some pandemic uncertainty. Structural trends point to ongoing demand growth.