Bisnow / Ethan Rothstein
120th annual REBNY banquet in Manhattan in 2016.
Even in light of the multitude of existential threats the industry faces, the confidence of trading brokers is on the rise.
The Real Estate Board of New York’s quarterly report on real estate broker confidence showed its current conditions index for commercial brokers hit a record high of 36, down from 20 in the previous quarter and above the previous peak of 32 from the fourth quarter of 2019. For residential brokers, the index reached 56, a slight decrease from the previous quarter.
“As the third quarter saw the real estate sector help the city move forward on the path to economic recovery, this report highlights the work that remains to be done,” REBNY Chairman James Whelan said in a statement. . “It is imperative that the incoming municipal government and the private sector continue to work together on issues critical to the city’s economic success, such as improving public safety, creating good jobs, producing much-needed housing. and the safe reception of tourists.
However, concerns remain across the industry, particularly about the continued impact of the coronavirus and how the new city administration will deal with real estate issues. The residential and commercial brokerage expectations index fell in the third quarter. The commercial brokers index fell from 52 to 37, while the residential brokerage EXI fell from 55 to 45, according to the survey.
Certainly, there are signs that things are turning around the real estate industry, although complex challenges remain. Office rental has improved dramatically, although the large amounts of space entering the market keep availability rates high. Yet nearly 60% of tenants said they are now in the market for office leases with a term of at least five years, according to a survey of 400 accounting, finance and real estate professionals. commercial run by lease optimization software company Visual Lease which was released this week.
While many tenants say their real estate plans for 2022 will not be permanent decisions, some 75% of landlords said they expect rents to return to or exceed pre-pandemic levels next year, and 61% of tenants also expect a return to pre-pandemic levels. office rents.
The New York residential market also seems improvement. Landlords are offering fewer offers to secure leases and home sales are increasing. In fact, more than 40 contracts were signed for apartments of $ 4 million or more for the fifth week in a row, according to data from Olshan Realty.