Renovation/hospitality projects driving New York Real estate growth

The improvement in the economy of United States is leading to stability in the New York real estate scenario. The strong industrial recovery is leading to the increased demand for online warehousing, resulting in healthy vacancy levels that is continuing to fall. Multifamily construction is rebounding but it is still below normal levels and an upswing in renovations is driving capital expenditure. Underproduction from the past several years is resulting in a prolonged shortage that is keeping the available New York apartments for rent above average but below the maximum levels. Coming to the office sector, renovation and construction pro ects are very low but those renovations that were postponed during recession are back on track. !owever, employment growth is yet to return to the pre"recessionary levels with the improvement in economy. The office rents are above average in the cities such as #ew $ork %midtown and downtown&, 'oston, (ashington )C, Chicago, San *rancisco, +os ,ngeles, )allas and !ouston where obs have recovered -uite fast. The New York real estate that consists of hotel construction pro ects has shown an increase in #ew $ork City with new owners investing capital into existing properties in deferred renovation pro ects. The occupancy rates do indicate a strong recovery underway. #ew $ork has emerged as the largest global real estate investment that saw volumes increase by ./.01 to U.S. 234 billion last year as per the report released by the Cushman 5 (akefield6s annual (inning in 7rowth Cities report launched in the 89:; <8,+ trade fair in Munich = 7ermany. )uring the second -uarter of >?.@, real estate investment volumes in #ew $ork rose by @41 to U.S. 234.> billion. The top cities of the world continued their popularity across multiple sectors with different cities tend to dominate different markets. *or instance, +ondon emerged as the largest office market, !ong Aong topped for retail segment, +os ,ngeles as the largest industrial hub and #ew $ork topped in multifamily and !ospitality sector. Bnvesting in the #ew $ork City6s %#$C& hotel development is emerging as the perfect sense for .?@. 8xchange individuals. Bndividuals or investors who have sold or thinking about selling or putting their New York homes for sale or property in the near future and want to avoid or defer paying substantial capital gains taxes at sale are banking on the profitable margins returned by smart investments in the #$C hotel developments. There are some benefits of investing in a .?@. 8xchange in the #$C hotel industry. Bnvestors get benefit to

their e-uity from day one. Bn addition to real estate, investors can participate in operation cash flow by investing in the ongoing hotel pro ects in the 'ig ,pple %#$C&. There is an incredible level of competition within the #ew $ork City hospitality sector. The U.S. hotel and motel market involves around 3?,??? companies operating about C?,??? properties with #ew $ork City and its vicinity having over C??? hotels that compete on several levels including spatially and vertically. Bt can thus be concluded that the current hotel development in #$C is helping to drive the city6s travel and tourism industry.