Transportation is key to creating desirable inventory, and the current administration has shown they understand that. Look no further than the extension of the 7 line to Hudson Yards, a move that unlocked more than $5 billion of investment into the neighborhood, as proof that the City is capable of nurturing new development and the community around it—when they choose.
“If you compare Hudson Yards to the Financial District, it’s much more centrally located and the 7 train expanding to the area will increase the surrounding properties from the High Line all the way up to Javits,” says MNS CEO Andrew Barrocas, who notes that Related is extremely vested in the area. “They have a history of getting the highest price per square foot.”
As smart developers re-imagine under-managed portfolios into the kind of properties New Yorkers demand, it’s a no-brainer that luxury properties require an abundance of transportation choices. “There’s a demand for it. It’s larger apartments,” says Barrocas, who compares cost of transportation and entertainment at 25X what it was 30 years ago, compared to a relatively modest 10X on real estate, citing that the luxury market in the late ’80s was hovering around $700-$800 a square foot.
“And they’re going to keep pushing the limit. New York is proving to be a safe play. There’s a demand for luxury product when you’ve got places selling for $10,000 a square a foot.”
After all it’s New York and the sky’s the limit.