June 17, 2019
June 24, 2019
Bisnow Survey: Amazon’s Departure Hasn't Changed Most Developers', Investors' View of Queens
Amazon’s decision to cancel plans for a new campus in Queens was met with horror from the New York City real estate community. But it appears the killed deal has done little to sway opinions of the borough, according to respondents in a new Bisnow poll.
In the survey, a non-scientific poll conducted as part of Bisnow's Queens Neighborhood Series, 88% of the 34 respondents, a significant majority of whom do business in the borough, said Amazon’s decision to back out of Long Island City has not affected their view of Queens’ future.
As the population of the borough has grown, more and more investment dollars and development has flooded into Queens neighborhoods. A total of $1.1B worth of investment sales were recorded in the first quarter of this year, according to Cushman & Wakefield data, a 2% drop from 2018. Though significant development and investment is still happening in well-trod areas like Long Island City and Astoria, building is increasingly taking place in places like Flushing and Jamaica.
Some 61% of respondents said they had invested in major developments in Queens in the last five years. Long Island City remains their top area for investment, with more than half of the respondents listing the neighborhood as the place they are most interested in developing or investing, followed by Astoria (35%) and Flushing (29%).
The most popular asset class was multifamily, with 58% of respondents selecting it as the most appealing type of development in the borough today. Twenty percent said industrial was the most appealing asset class in Queens.
Like much of the city, development can be a contentious issue within the community. However, 47% of respondents said while they are concerned about the impact of development on the local community, it can be done so that it works well. Some 44% of respondents said they were not concerned and the development is having a positive impact.
The biggest challenge facing Queens developers and landlords is anti-development community groups, according to the survey, with 35% listing that as their biggest hurdle. Twenty-nine percent of respondents said increasing land and construction costs were the biggest challenge, while the same number pointed to rent regulation changes.
While many have raised the issue of Queens' transit being inadequate or overcrowded, a total of 52% percent of respondents believe the borough has sufficient transportation infrastructure to handle the increased development.