When considering real estate development, there are two main paths a developer can take – either ground-up construction projects or renovation projects. Both have advantages and drawbacks, and it’s worth assessing the local real estate market and analyzing which approach best meets the needs of that market.
One recent trend in real estate is to convert religious houses of worship into residential spaces. In New York City alone, there are no less than 16 such conversions. But it’s not just happening in New York. All around the world, churches, temples, and synagogues are being converted into houses, condos, co-ops, and apartment buildings.
In most cities around the world, abandoned buildings are regarded with distaste. This is true for NYC abandoned homes, factories, and buildings too. Abandoned buildings are eyesores, but for some investors, they can also be an incredible opportunity to bring something new to the New York City landscape.
Trend setters set trends, and the new corporate headquarters of Facebook, Google and Apple will certainly inspire design elements that will find expression in other office sites. Of course, no one scouting for a new space for their company expects to find a circular building that looks like a spaceship, but those looking for office space will value these other features.
Commercial real estate is under siege by sustained low interest rates that have driven down cap rates and forced companies and individuals to both work harder and take more risk in order to achieve their investment return goals. With the unknown impact of unwinding QE on the financial horizon, commercial real estate firms need to be proactive in restructuring in order to prepare for any eventuality.
What’s interesting that sales in the Cobble Hill, Dumbo, and Brooklyn Heights neighborhoods doubled year-over-over in the first quarter from 2016 to 2017 while homes sales in Bedford-Stuyvesant, Crown Heights, Lefferts Gardens, and Bushwick increased by just 7 percent.