Retail spaces outside of Manhattan are seeing a huge boost in popularity with an influx of buyers from across the country, according to Marcus & Millichap retail specialist Scott Plasky, who focuses exclusively on outer borough retail.
Many of these neighborhoods—Jamaica, the Bronx, St. George in Staten Island and Northern NJ—Scott tells us, are seeing 1031 buyers from across the country come in and pay a higher rate for long-term leases in first-floor tenant spaces with major commercial and anchor tenants. The neighborhoods are drawing investors because of their great locations and infrastructure, access to transportation, strong population growth and track records of strong retail, without the high rent prices you find in Manhattan.
Local and national 1031 buyers are not only interested in great emerging neighborhoods, but properties paired with major commercial retail tenants, including anchor grocery, commercial banks, drugstores, urgent care facilities and dollar stores. Scott tells us about his most recent sales, include a Key Foods lease on the first floor of a new Staten Island condo and an urgent care facility at the base of a new Jamaica, Queens, condo. Both of these were 1031 investor purchases.
For more info on outer borough retail investment sales, click here.
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