Bloomberg: Richard LeFrak-Will Volatility End High Times in High-End Real Estate?

Richard LeFrak notes the following:

1) The stock market volatility is definitely having an impact on the high end market in both Manhattan & Miami; he sees an overbuilding of very high-end luxury condo product & flattening out of the luxury rental market;

2) Urbanization is having a major impact in both NYC & the rest of the U.S.; millennials are the driving force behind the emerging markets of Brooklyn, Jersey City & Queens; and

3) NYC is experiencing both population & job growth; jobs in tech, media & hospitality are outpacing high compensation positions in Finance.

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1) Year-Over-Year Median Sales Price Up 25.18% in Manhattan;

2) Upper West Side Has Most New Development Sales;

3) Year-Over-Year Price PSF Up 25.5% in Brooklyn;

4) Largest Quarterly Upswing: Gramercy Park;  

5) New Development Sales Up 28% From 3Q2015 in Manhattan...

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Bloomberg Interview: Stephen Ross: Real Estate Has Been a Very Good Asset

Stephen Ross, Chairman of Related Companies, has a very positive view of the future of NYC as well as real estate as a long term investment...

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 London, England

London, England

Yolanda Barnes, who leads Savills Research Team, notes: "The value of global real estate exceeds-by almost a third-the total value of all globally traded equities and securitized debt instruments put together and this highlights the important role real estate plays in economies world-wide. Real Estate is the pre-eminent asset class which will be most impacted by global monetary conditions and investment activity and which, in turn has the power to most impact national and international economies."

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 Mid-town Manhattan, New York

Mid-town Manhattan, New York

Despite the volatility in the stock market and drop in oil prices, New York City continues to be a prime destination for wealthy investors seeking a safe haven. Approximately $4BN of global capital flowed into Manhattan in the 3Q2015 and 24% of overseas investors are planning to invest in New York real estate over the next 12 months. As China's stock market continues to decline along with its currency devaluation, the demand from Chinese investors is expected to continue, but not in the ultra-luxury market. They will be seeking smaller units in the $2MM-$4MM range (averaging $2,000-$2,500/sf).

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Bloomberg Interview: Leonard Steinberg-Luxury Real Estate Boom Going Bust?

Leonard Steinberg comments on the current state of Manhattan's luxury residential real estate market: 1) there has been a slowdown in the $10MM+ market, reflecting in part the recent volatility in the stock market and 2) The under $3MM market remains very strong; this is the segment of the market in most demand...

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Bloomberg Interview: Spencer Rascoff-Interest Rates in Unchartered Territory: Zillow CEO

Spencer Rascoff, CEO of Zillow notes that Chinese buyers represent 25% of all foreign investment in U.S. residential real estate and the Chinese are not just buying in the U.S. gateway cities...

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 Dock 72 - Brooklyn Navy Yard

Dock 72 - Brooklyn Navy Yard

Given the high cost of leasing space in Midtown South ($70's-$80's/sf), the appeal of Brooklyn bodes well for TAMI sector tenants. Whether warehouse conversions or ground-up construction, new options are now available for commercial office space users in Williamsburg, DUMBO, Downtown Brooklyn, the Brooklyn Navy Yard, Industry City and Bushwick. Proximity to labor force is key; 20% of Brooklyn's population is now comprised of millennials drawn to the borough for its creative vibe ("cool factor"), where they want to work and live. Both the residential & retail sectors will benefit...

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 The Boerum - Boerum Hill, Brooklyn

The Boerum - Boerum Hill, Brooklyn

Since this article appeared last year (2/2015), several Manhattan-type quality new development condo projects in Brooklyn have experienced very successful & brisk sellouts: The Boerum-96% sold ($1,332/sf; $1,950,894-avg. price); 345 Carroll St.-91% sold ($1,284/sf; $2,485,000-avg. price); 465 Pacific-97% sold ($1,408/sf; $2,052,068-avg. price); and 51 Jay St.-58% sold ($1,463/sf; $2,357,466-avg. price). Full service luxury condo buildings at an affordable price ($1,200-$1,500/sf) are in great demand in Brooklyn...

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