Manhattan, Queens and Brooklyn Continue Rapid Increase of New Residential Product

According to The Marketing Directors’ 2017 Development Pipeline Report, Brooklyn has the highest number of residential units projected for 2017 at 8,596 (90% of which is rental). This is a whopping 112% higher than the number of Brooklyn units that came to market in 2016.On the rental front, Brooklyn has the highest projected number of rental units (7,708), while Manhattan and Queens are expected to have 4,693 and 4,941 rental units respectively. Overall among the three New York City boroughs, the total number of residential units projected for 2017 is 80% higher than the number of units that came to market in 2016, as seen in the report compiled by the national development advisory and master property marketing and sales firm. The majority of pipeline increase is occurring in Brooklyn and Queens, while Manhattan is only seeing a 2% increase from the amount of new residential units in 2016.

As a result of the lack of 421-A incentives and climbing land prices, the new development boom slowed down somewhat. However, due to the nature of new construction, the effects of this will not be seen for a few years. Properties entering the market today were planned years ago, prior to the development slowdown. The 2017 supply is also exacerbated by the fact that almost half (44%) of residential units projected for 2016 did not materialize, much of which was delayed until 2017.

“While the overall residential market in Manhattan continues to exhibit strong fundamentals, residential units in Queens and Brooklyn have increased at a particularly fast pace,” notes Joshua Silverbush, Director of Market Insights at The Marketing Directors. “This has created opportunities in a wider range of areas that previously had not seen much new development.”

Other findings in The Marketing Directors’ 2017 Forecast and Development Pipeline:

Jersey City

• oThe number of total residential units in the pipeline is set to increase 153% from 2016, a year that saw limited new developments come to market
• oThe condominium pipeline will experience a particularly large increase, although new product was very limited last year.The 2017 increase is primarily due to Park | Shore, at 75 Park Lane South, a 359-unit condominium tower being developed by Strategic Capital and brought to market by The Marketing Directors.

Brooklyn

• oNew units are becoming increasingly widespread, with areas such as Prospect Lefferts, Boerum Hill, and Greenpoint seeing more activity
• oThe Domino Sugar project is finally hitting the market
• oDowntown Brooklyn rental units will continue to face increased supply, with the number of new units in 2017 comparable to that of last year

Manhattan

• oRentals increasing in areas where they have not been prevalent – Harlem, FiDi
• oLess new product than projected for 2016 (-40%) and slightly higher than what actually came to market in 2016 (+2%)

Queens

• oSeeing largest increase in new residential development of the three boroughs analyzed in the report
• oNew residential development in Flushing is moving along, specifically in the rental front
• §Two Fulton Square is the most noteworthy condo in the pipeline
• §New rentals will face a test in an area where condo has been the primary form of new construction
• oLong Island City
• §913 of 1,474 total units projected didn’t come to the market in 2016
• §Some of the most anticipated projects for years are finally coming to market, including:
• 1.The Forge developer by Brause Realty and Gotham Organization (leasing and marketing by The Marketing Directors)
• 2.Eagle Electric Lofts developed by Rockrose
• 3.The Tishman Speyer development on Jackson Avenue
• 4.Tower 28 developed by Heatherwood

For more information on the market report,please visit www.themarketingdirectorsinc.com

or call 212.826.8822.

About The Marketing Directors

With over thirty-five years of experience, The Marketing Directors is the preeminent development advisory that works exclusively on behalf of owners and builders to develop, market, and sell homes. The Marketing Directors are industry leaders, respected partners, and market innovators. Headquartered in New York with offices and sales and rental teams active across North America, The Marketing Directors has helped its clients successfully sell-out hundreds of new developments accounting for $30 billion in collective sales.