But I do know that, in the past, the state of commercial real estate market has often been an indicator of things to come in the residential market.
That is precisely why this piece from Globe Street grabbed my attention. If in fact, as reported, the vacancy rate has dropped below 7% for midtown commercial space and prices are headed for the $200/sf mark, that means that people with deep pockets may be moving in, and they will be needing places to live. Where are all those executives going to live? (Here’s one idea: Perhap the City’s proposal to buy the Hudson Rail Yards would make a good place for some spectacular residential development and parks to serve the potential demand for more good living in midtown.)
It will be interesting to see how this plays out but I will say that when Reuters, Ernst & Young, and NASDAQ moved to Times Square, the residential prices, and in turn residential development picked up a great deal of steam. There is still some incredible value in the residential market in midtown. The gentrification of midtown is ongoing.