Second Ave. Real Estate Sagas: A four-year gambleBy
When last we checked in on the Second Ave. real estate scene earlier this year, the residential market seemed to promise a good time to rent or buy for those who could wait out the construction. With rates dropping along the subway’s path, buyers who could hold onto their property would surely realize profits by late 2016, and renters, meanwhile, could find a cheap place to live for a few years, albeit one in the middle of a construction zone. But what of commercial real estate?
Today, Alessia Pirolo of The Wall Street Journal examined some recent commercial transactions along Second Avenue and find a few hearty souls willing to take advantage of low rates. According to Pirolo, retail rental rates have dropped by as much as 40 percent since construction started and some store owners are willing to gamble for the next four and a half years. “The rent was very attractive,” one owner said. “When we signed the lease, the construction was taken into consideration.”
As residents say they’ll support any local business willing to open amidst SAS construction, owners know that toughing it out for four years could pay dividends as the subway will bring a huge boost in foot traffic and business. Landlords, said one broker, could expect a bump of at least 20 percent from the pre-construction peak. “Private money always follows public money,” Jason Pruger of Newmark said. “Look at the High Line.”