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  • Writer's pictureCorey Cohen

Office to Residential Conversions in Olde New York

This is Corey Cohen, founder of The Roebling Group, and here's a glimpse into recent real estate news. My Buyer's Guide is on Amazon

Last week, I published my buyer's guide on Amazon! Check it out if you're on the search and you want to learn the ropes from a top-ranked Streeteasy Expert. 


Buyer's Guide on Amazon

Converting Office Spaces into Affordable Housing

In New York City, a program called the Office Conversion Accelerator is underway to transform old office buildings into residential spaces. Currently, 46 buildings are enrolled, with four already in the conversion process expected to generate over 2,100 housing units. This initiative responds to the post-pandemic shift towards hybrid work and addresses a long-standing housing shortage, leading to soaring rents. 

Discounts Increase in NYC Real Estate

Buyers in New York City's residential market are currently gaining leverage, with the typical citywide discount for a home sale in December at 4.2% off the list price, up from 3.8% in 2022. This trend is attributed to buyers waiting for further mortgage rate drops and increased for-sale inventory. The average rate for a 30-year fixed mortgage was 6.66% last week, showing a downward trend. However, agents believe the spring selling season could reverse this trend, expecting a surge in buyers due to potential interest rate cuts and seasonality. 

The luxury market, homes asking $4.95 million or more, sees some of the biggest discounts, with a typical sale discounted by 7.6% in the fourth quarter. Negotiability is also observed in the new-development market. Despite the current buyer's market, demand remains strong for well-priced apartments, suggesting the market could shift quickly in the spring. The Headlines

  1. Real estate developer Gary Barnett, CEO of Extell Development, achieved a personal record by selling a duplex penthouse at Central Park Tower for "quite a bit" more than $100 million. The final sale price has not been confirmed, but the unit is the second most expensive in the building, following another penthouse listed for $195 million.

  2. Despite challenges in the commercial real estate market, significant leases were signed in Manhattan in late 2023. Despite the "doom loop" concerns, these major leases underscore continued activity in Manhattan's commercial real estate sector.

  3. A Manhattan penthouse, the largest unit at the One High Line condominium, has gone into contract. Developed by the Witkoff Group and Len Blavatnik's Access Industries, One High Line spans a city block above the High Line Park.

  4. A penthouse on Billionaires' Row at Central Park Tower in NYC is in contract for more than $100 million. Central Park Tower is the tallest primarily residential building globally, standing at 1,550 feet, and features about 179 residential units, including a private members club on the 100th floor.


Have a question about buying or selling real estate in NYC? Please feel free to book an appointment with me here for a consultation.  Best,

Corey Cohen


Founder

The Roebling Group

646.939.7375

@mrcoreycohen

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