Market Forecast Highlights Changing Retail Trends, Explosion of Commercial and Residential Development in Manhattan
At the recent EisnerAmper Real Estate Private Equity Summit , the first panel of the day gave attendees an updated forecast for private equity real estate funds. Panelists shared some of the trends that are re-shaping the market:
- A tremendous wave of capital is flowing into New York, which fits with its status as a premier market. Everyone wants to live in Manhattan or London, so residential development is becoming vogue. The high-end condo market, for example, is very hot in New York and specifically in Manhattan.
- Commercial development continues to explode, especially from Hudson Yards to Lower Manhattan. The panel cautioned though that on the retail side, people are grossly underestimating the impact of e-commerce. E-commerce is disrupting the traditional distribution model, meaning that there will be fewer and fewer bricks-and-mortar operations needed. With the demographic shift, and younger generations’ embrace of all things technological, traditional retail will be decimated.
The trends seen in New York are being seen across the country, so the message applies beyond the five boroughs. One thing is more certain than ever in every market: It will be even more critical for developers and businesses to be able to anticipate and quickly respond to these shifting needs in the future.