Andrew Schulman

I found this Bloomberg article interesting as it discusses how developers are actually optimizing space and amenities to make apartments smaller, rather than larger. According to RentCafe, the average studio size has shrunk by 54 square feet to 445 square feet since 2014. These compact studios appeal to cost-conscious renters who are willing to sacrifice space for lower rent. For developers, smaller units mean more apartments per building, which helps cover rising construction costs. As the younger generation increasingly chooses to entertain outside their homes, work at coffee shops, and travel, this trend is becoming more significant. More on why we may continue to see floorplans reduce in size: https://ow.ly/IQAL50TkBEv

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The commercial real estate industry has been facing a number of challenges these past few years.🏢 One challenge in New York City in particular, is the 95 million square feet of office space unoccupied. With the rise in hybrid or remote work, many offices stand empty. ❓ So how do commercial real estate owners attract tenants back? ❓ Our RVP, US Umair Ahmed dives into some ways commercial real estate owners might be able to attract tenants back: https://lnkd.in/dSbJ_2-3

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The abundance of vacant office space that sprouted from the post COVID era, mixed with the affordable housing crisis plaguing NYC, has provided a growing necessity for Office-to-Residential conversions. At first, it was believed that this wouldn’t completely pan out for a number of reasons, including the physical inappropriateness of older office building windows and floor plates for residential, and various zoning obstacles. Thanks to government programs, such as the Accelerator Program, and deeply discounted assets, conversions were made more feasible for developers, resulting in a drastic increase of conversion projects in the pipeline.

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Fantastic #retail insights in the Q2 Market Snapshot report from Colliers Capital Markets | U.S. While retail investment sales remained constrained, shopping centers have posted back-to-back quarters of sales gains compared to the year prior and fundamentals remain sound. Full report available here: https://bit.ly/47JiBYB.

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In the latest report from Savills Research, we focus in on New York City's commercial real estate market and uncovering its "true availability rate" - as well as what can be done to significantly move the needle in the market. To discover Savills Research's findings and key takeaways, visit: https://lnkd.in/dVUjtH9v #WeAreSavills #CREInsights

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HOW CHANGING BEHAVIOR IS RESHAPING CRE -How demographics and psychographics are shaping CRE demand -Why migration trends are changing the CRE outlook -The new opportunities being created by evolving behavior . . .⁣⁣⁠ #nycrealestate #newyork #newyorkcity #manhattanrealestate #multifamily #newyorkrealestate #nycbuildingadvisors #realestatebrokernyc #stewartgroup #marcusmillichap #commercialrealestate

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Hey Baby, How About a Buyout! When it comes to land assemblage, there is nothing that can compare to New York City. Assemblage is the practice of acquiring many smaller asset owned by several different owners in order to create a buildable development site. To create the ability to do the sale of this 75,000 buildable square foot site, the seller worked tirelessly over several years to purchase each of the component assets. There was one “holdout” owner (the term used for an owner that won't sell even if the price is well in excess of the market) in the middle of the block. To induce this holdout to sell, the owner publicly stated that they were going to build low income housing projects on the balance of the land they acquired. Before you knew it, the holdout seller was happy to take a reasonable price. That left the tenants, some of which were commercial and some of which were rent regulated residential tenants, as well as complicated zoning issues. We were retained to sell the site prior to the tenants being vacated and began the marketing process telling buyers that the seller would vacate the premises and that we could work around the zoning issues. A pizza shop with about one year to go was paid about $150,000 to leave early. A few of the residential tenants were bought out at reasonable amounts, which left one tenant who was presumably a free market tenant who should be able to be vacated at the expiration of their lease. After a comprehensive marketing process, we signed a contract at an astounding price of $69,600,000 or $926 per buildable square foot – but it was contingent upon getting the last tenant out. That tenant happened to be an escort (verified by the seller based upon Craig’s List ads) who, although a non-regulated tenant, could have made a claim that they were rent regulated. After weeks of negotiating, the escort got $850,000 to leave.  Here is what one of the sellers had to say: “We made the decision to retain Bob Knakal, Jon Hageman and their team based on their track record for achieving record development site pricing. This transaction was fairly complex, involving tenant litigation and challenging zoning issues that necessitated a non-traditional deal structure. In turn, this could have really harmed our sale pricing. In spite of the challenges, Bob and his team did an excellent job talking purchasers through the potential issues and were instrumental in bringing about a fantastic result. Overall, we were thrilled with their team’s execution and would certainly look to use their team again.” - Kas Sanandaji, Apex Investments #TestimonialTuesday #Investmentsales #NYCRealestate

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