Survey: Queens, Bronx Are The Next Big Things For Developers; Tech Companies Are Driving Commercial Growth in NYC
Survey of commercial developers and builders by accounting firm Anchin, Block & Anchin with Commercial Observer suggests Next Wave Will Focus on Boom in Technology Firms Rather than Finance, Law.
NEW YORK, Jan. 26, 2015 /PRNewswire/ -- A survey of real estate executives conducted by accounting firm Anchin, Block & Anchin in cooperation with Commercial Observer found that while Brooklyn development is still growing, a majority of respondents (66 percent) believe Queens is the next big thing, with about 38 percent also positive on The Bronx. Respondents represent companies ranging from several million to billions in value.
"Real estate executives know that project availability in Manhattan is limited, and Brooklyn's major development phase has been ongoing for some time," said Marc Wieder, CPA and partner at Anchin, Block & Anchin LLP and co-practice leader of the firm's Real Estate Industry Group. "The next big thing for New York City is building up Queens and The Bronx. We anticipate major housing and commercial developments there in the next few years."
Seeking new prospects, many developers are turning their focus away from Manhattan – only about 16 percent of builders think the High Line area is poised for growth and development.
In addition, the state of the market appears strong, with approximately 58 percent of respondents reporting their tenants are eager to sign longer leases – a sign that businesses believe rents will increase steadily under a solid economy.
"Tenants know New York City rents haven't declined in years, they only increase, so they're on board to sign up for longer leases to protect themselves from rent hikes," said Robert Gilman, CPA and partner at Anchin, Block & Anchin LLP and Co-Practice Leader of the firm's Real Estate Industry Group.
"Developers are betting that the local economy is strong and will only continue to get stronger, a trend indicated by the increasing real estate purchase and lease prices we're seeing," he added.
Approximately 67 percent of real estate executive respondents say technology companies are driving growth in commercial real estate leasing. Accordingly, almost 44 percent of respondents said tenants are most concerned about common areas and entertainment space – a feature many high-tech startups tout.
"The technology industry is driving significant growth in commercial real estate," Wieder said. "We're seeing innovative companies with large, open offices that place a high value on creative communal spaces. In return, developers are listening and modifying offices to suit these needs. New York may be home to countless financial and legal firms, but technology companies are truly spurring growth."
A PDF version of the survey data and polling demographics is available on request.
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Anchin, Block & Anchin LLP today is recognized as one of the "best of the best" accounting firms in the country, a Best Place to Work in New York City and New York State, and a Best Accounting Firm to Work For nationwide. The full-service firm, with a staff of 350, serves privately-held businesses and high net worth individuals with a wide range of traditional and non-traditional advisory services, including accounting and auditing; tax planning and compliance services; tax credits and incentives; management and succession advisory services; litigation support, forensic accounting and valuation services; and, merger and acquisition services. Additional information is available at www.anchin.com/news-events/news/.
CONTACT:
Lee Peretz, Anchin, Block & Anchin, (212) 840-3456
Adam Dickter, Dukas Public Relations, (646) 808-3700
Marc Wieder, CPA, is an accounting and audit partner at Anchin, Block & Anchin LLP with over 25 years of experience servicing the accounting, business, and financial needs of real estate companies and their owners. He has extensive experience in the area of federal, state, local, personal and business taxes. As chairperson of the Real Estate Services Group at Anchin, Marc routinely helps to shed new light into the complex world of taxation, particularly as it relates to selling and acquiring real estate.
Marc has written numerous articles on various real estate topics published in Real Estate Weekly, Real Estate New York, Real Estate Journal, Shopping Center Business, and other publications. He frequently lectures for large groups and currently writes a monthly column for Real Estate Weekly. He served for 10 years on the advisory board to the University of Buffalo Department of Accounting and Law.
Marc is a member of the American Institute of Certified Public Accountants (AICPA), the New York State Society of Certified Public Accountants (NYSSCPA), the Real Estate Board of New York (REBNY). Marc is on the boards of The Fashion Center Business Improvement District and Variety The Children's Charity.
Robert Gilman, CPA, is an accounting and audit partner at Anchin, Block & Anchin LLP and Co-Practice Leader of the Firm's Real Estate Industry Group. His practice covers a wide range of services for his clients who are mainly involved in the commercial, residential and development of real estate. These services include due diligence on acquisitions, tax structuring on deals, securing financing, and assisting with client investor relations for both domestic and international investors. Rob also advises clients with financial and estate planning, budgeting, tax planning, and cash flow strategies.
Rob is a member of the American Institute of Certified Public Accountants (AICPA), the New York State Society of Certified Public Accountants (NYSSCPA) and the Real Estate Board of New York (REBNY). He is involved with a number of Real Estate industry organizations and is actively involved with the Long Island Chapter of the March of Dimes, which he was recently honored for.
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SOURCE Anchin, Block & Anchin LLP
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