Lower Manhattan Is Swimming In New Apartments And Buyers Are Demanding Discounts

Unsplash/Brandon Jacoby
Lower Manhattan

Apartments in Manhattan’s Financial District are taking longer to sell, and are doing so at lower prices, thanks to a rush of new development that isn't slowing down.

In the second quarter, apartment inventory in the area jumped 24% year over year, Bloomberg reports, citing data from the Corcoran Group. Meanwhile, the average price for a new development unit plunged 46%, and the resale condo average price went down by 11%, the data found.

“Buyers are keenly aware of the amount of inventory available, and want to negotiate at all price points,” Core’s Garrett Derderian told Bloomberg.

Another broker, Warburg Realty’s Steven Gottlieb, said “many of the people who wanted to buy there did,” and added that he sees little demand for product remaining in the neighborhood.

The area has experienced something of a renaissance in recent years, as major companies have taken space downtown and the World Trade Center has taken shape. Some 10M SF of new office inventory has been added since 2009, according to Colliers International, and more retail and restaurants are on the way. But the number of condominiums added is far outstripping demand.

Meanwhile, Harry Macklowe is building a luxury tower at One Wall Street, Lightstone Group is developing 130 William St., and Bizzi & Partners, Howard Lorber’s New Valley, investment firm Carlton Group and equity partner China Cindat are working on 125 Greenwich St., which was recently facing foreclosure.

Plus, Metro Loft is buying insurance giant AIG’s headquarters at 175 Water St. and is planning to convert part of the building to residential units, The Real Deal reported last week.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

NYC Office Investor Warns It Could Go Under As Defaults Pile Up

Chetrit Group 'Being Dissolved' As Family Turmoil Spirals

Astrodome Conservancy Solicits Redevelopment Ideas

Century 21 Retail Redevelopment Advances With New Financing, Leases: The N.Y. Deal Sheet

How To Streamline Operations And Accelerate Receipt Of Capital On Construction Projects

Builders Turning To Prefab Solutions As Speed To Delivery Becomes Critical Consideration

Bally's Debt Obligations Raise Doubts Over Casino Operator's Future

Making The Case For Preconstruction As Risk Management

Contractors Feel Squeeze As Prices Rise 7.4%, Backlog Shrinks

With Data Centers Devouring Construction Materials, Mass Timber May Finally Have Its Moment

Plans Submitted For Massive 1.1M SF Canary Wharf Office Retrofit

Tax Break Fight Threatens Development In Housing-Starved Long Island