Amazon's Long Island City Base Will Increase Residential Property Prices Dramatically According to PropertyShark

Amazon has finally decided on a new headquarters for their operations.  Instead on just deciding on just one location, they have decided on dividing it up with one location in Arlington, Virginia and another right here in Long Island City.  There have been numerous prognosticators discussing the implications on the move.  Some have not been positive.  What has been a consensus is that the interest in Long Island City and surrounding areas will be heightened.  A new article by PropertyShark shares their insight on what they are expecting for the future of the area surrounding the Amazon HQ.

There has been an increase in interest in Long Island City, Astoria and Sunnyside.  Point2Homes indicated that there was 198% increase in page view in Long Island City.  Residential neighborhoods around Amazon's headquarters will boom at a high pace but also neighborhoods around the subway 7 line will see increase in residential home prices as well.  Matthew Haines, real estate investor and founder of PropertyShark states “Prices along various subway lines are going to rise by 25-40%. Neighborhoods that have been stable for generations are going to get gentrified and existing residents pushed out.” 

Long Island City itself has seen a 35% increase in home prices in the last 5 years reaching a peak of $435,000 in 2017.  PropertyShark expects prices to increase at a more accelerated pace with a higher demand.  Hunter's Point they believe will see average prices hit $1 million in the near future.
Another result of Amazon's move and increased property prices will be gentrification of areas that have remained the same for many decades.  Matthew Haines explains “Until now the 7 train and the communities surrounding its stations haven’t really seen the gentrification and increase in price that other lines like the N, E and F serving Queens or any of the lines serving Brooklyn, even if commutes into Manhattan were significantly longer on those lines.  Suddenly the 7 train is going to be discovered.  Prices are going to swing in the other direction, from relatively affordable (for NYC) to very high.".  Neighborhoods that were pointed out with being impacted are Jackson Heights, Elmhurst, Corona Downtown Flushing.  Further out, Richmond Hill, Forest Hills and Rego Park will be affected.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/amazons-long-island-city-base-will-increase-residential-property-prices-dramatically-according-to-propertyshark/

Manhattan Office Rents Show Positive Signs in Third Quarter Report

Colliers International published their Manhattan 3rd quarter Office Market Report recently.  The report indicates that leasing activity between January and September reached levels not seen since 2002.  Also year to date activity has already surpassed 2008-2012 levels.

The robust job market has precipitated the growth in the office market sector.  Specifically from August 2017 to August 2018, New York City added 74,200 new private sector jobs which was a 1.9% increase.  Also, unemployment has dropped 0.8% within the year as well.  Manhattan leasing was showing significant health as it has shown a 4 year high.  Leasing increased 20.1% from the 3rd quarter of 2017 and 25.4% over Manhattan's 5 year historical average and 48.5% over the 10 year average.  Quarterly inventory remains unchanged at 10.2% for the quarter and slightly above (.4%) year over year.

The news on asking rents is even better for landlords.  The report shows that asking rents has hit an all-time quarterly record at $75.86/ sf.  The asking rents is up 2.3% from the 2nd quarter which is the largest quarterly increase in 3 years.

In an interview at Globest.com, Craig Caggiano, Colliers International’s executive director states that absorption is a great indicator of the future.  It is noted that because of new construction and relocation tenants are moving from Midtown to Hudson Yards and Downtown.  In what is considered a "home run" he states  “Those tenants leave big holes in the market.  Those spaces are coming into our availability right now and into 2019. The fact that we are able to absorb that availability because of strong, relatively stable leasing has been a very important market indicator.”

The top sub-markets for asking rents are the following:

1.  Hudson Yards/Manhattan West- $106.19 sf
2.  Plaza District- $96.28 sf
3.  Soho- $89.93 sf
4.  Midtown- $84.33 sf
5.  Greenwich Village- $82.48

The top sub-markets for leasing activity by square footage are the following:

1.  Midtown- 7,346,224
2.  Midtown South- 3,088,334
3.  Plaza District- 2,810,959
4.  Grand Central- 2,379,560
5.  Times Square- 1,654,621

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/manhattan-office-rents-show-positive-signs-in-third-quarter-report/

REIT Markets Finding It's "Mojo" in Second Quarter After Historic First Quarter Selloffs

Globest.com is reporting that REIT equity shares increased 11.1% in the second quarter of 2018 after suffering historic selloffs in the first quarter that lent to a 10% decline in value for the period.  The report also indicates that shares increased another 3.6% in August as the sector is finding it's "mojo" according to Kroll Bond Rating Agency (KBRA).  The report covered 116 REITs that placed unsecured debt, including 66 REITs that issued notes in the public market, 28 REITs that issued unsecured notes but only via private placements and 22 REITs that borrowed via unsecured term loans but not unsecured notes.

According to KBRA  debt-to-market leverage for the REIT sector reached record lows by mid-year 2018, declining to a median of 30.2% for public and private note issuers. REITS have recovered all of their first quarter losses and are now high year-to-date as compared to the same period year over year.  Retail department stores as well as malls and shopping centers rebounded for the quarter.  Retail department stores are considered one of the strongest equity market groups.

Overall KBRA is confident in the overall REIT market stating “If REITS aren’t in the sweet spot for capital raising and allocation, they’re not far from it. Favorable borrowing costs and more agreeable equity valuations have become aligned with robust demand for properties and the backdrop of consistent economic and employment growth. The menu of REIT capital raising options has rarely, if ever, been broader.”

Other findings from the report according to the Globest.com article are the following:

• Alignment of shareholder and creditor interests is evident in the REIT sector, where lower-leverage REITs have substantially outperformed in the equity market, engendering a greater willingness to raise equity, expand portfolios and enhance diversification.
•  Lower borrowing costs for REIT unsecured debt than mortgage loans further align shareholder and bondholder interests, with unsecured borrowers prompted to avoid and retire mortgage debt.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/reit-markets-finding-its-mojo-in-second-quarter-after-historic-first-quarter-selloffs/

Violations of Loft Law Put Landlords In Jeopardy Throughout NYC

A new article by Real Estate Weekly highlights the jeopardy landlords are placed in by violating the Loft Laws.  As many as 339 buildings throughout the City are sanctioned as a result of the law and 264 buildings lack a Certificate of Occupancy meaning that tenants can withhold rent until the buildings are brought up to code.  This has led to many landlords not receiving rent for years resulting in bankruptcies, pre-emptive sales and buyouts by tenants.  It has also led to deteriorating conditions in the buildings due to revenue not being produced to fix repairs.

According to the article, the states interim multiple dwelling (IMD), has given tenants of illegally-converted lofts a tremendous amount of leverage over the process of getting the units compliant with the law.  Property owners have complained about renters not assisting with allowing access to the units for the necessary fixes.  Also tenants must agree to the improvements that must be made by the landlords.  Landlords have nine months to complete the first phase of compliance, which includes compiling reports about the present state of the building and how it will look once improvements are made.  Jason Frosch, a Loft Law specialist at the law firm Borah Goldstein says that a building owner on average will have a year to obtain a certificate of occupancy before tenants can go on perpetual rent strike. However, since most of them former factories and warehouses that’s nearly impossible to do. He states that “the requirements of the Loft Law are costly and time-consuming.  The law doesn’t acknowledge that reality and it requires owners to front those costs while allowing the tenants to deprive them of a revenue stream that is necessary to pay those costs by withholding rent. And it creates a perverse incentive for certain tenants to delay the process and obtain a windfall for doing so."

The IMD drafted in the 1980's was initially aimed warehouses in Soho, Chelsea and Tribeca.  The new updates to the IMD from 2010 also targets warehouses in what is deemed industrial sites located in Williamsburg, Dumbo, Bushwick, Bed-Stuy, Fort Greene, Park Slope and Long Island City.
Senator Martin Malavé Dilan, a Democrat from northern Brooklyn has introduced a bill allowing owners more time to make improvements before tenants could withhold rent. That bill was not voted for by the legislature and owners are hoping that they will open a special session to vote on it.  It is uncertain whether they would have the votes to have it pass at this time.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/violations-of-loft-law-put-landlords-in-jeopardy-throughout-nyc/

NYC Broker Confidence Declines Entering Into The Slower Fall Season

The Real Estate Board of New York (REBNY) published their broker confidence index for the 2nd quarter of the year and it shows a decline from first quarter results.  REBNY which surveys its residential and commercial brokerage division members to measure their confidence in the New York City real estate market publishes their results quarterly with the top index being a 10.  The index shows that broker confidence decreased in the second quarter of 2018 to 5.53 out of 10.  This is a decrease of 0.25 from the first quarter of 2018.  Residential broker confidence levels hit a record low of  of 4.63 in the second quarter of 2018.

The report indicates that the main factors for the decreasing optimism with broker circles are political uncertainty, the expectation of rising interest rates, how the tariffs will affect investments, concerns about the implications of tax reform.  John Banks, President of the REBNY states "As federal policies have taken effect, local real estate markets have been seeing their impact on buyer hesitancy and seller uncertainty.  Despite these conditions, New York City real estate brokers remain positive overall about the present situation and future real estate market."

Some brokers believe that pricing and the lack of housing remains a major concern in the residential market.  One broker states "The biggest issue is still pricing, but a close second place is condition of the apartment," said a residential broker. "Buyers are slower to purchase an apartment that needs a good deal of work."  All of these concerns are affecting future confidence in the market as well.  The Residential Broker Future Confidence Index  which is an outlook on the future market six months from the date the survey was completed hit a number of 4.46.  This is 1.18 decrease from the first quarter of 2018.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-broker-confidence-declines-entering-into-the-slower-fall-season/

Two Queens Neighborhoods Score High in Rentlogic Survey of Best Multi-Family Rental Buildings

The New York Post recently published an article on areas renters should avoid because of failing grades.  The Post used a survey by Rentlogic, a real estate data firm which hands out grades to New York City's multi-family rental buildings.  The company uses public information from the city on building violations and tenant complaints and then assigns properties a score of A (excellent), B (good), C (needs improvement) or F (unacceptable).   The survey gave high grades to two Queens neighborhoods of Floral Park and Elmhurst.  Areas in Manhattan and the Bronx scored at the bottom end of the grading.

According to the article, Rentlogic was able to review data on more than 1 million buildings from roughly 300 neighborhoods throughout New York City.  An analysis of the data, Rentlogic was able to determine what were the best and the worst neighborhoods throughout NYC.   The Post reports "The most surprising result: Prices aren’t always a proxy for quality. For instance, the city’s best-graded neighborhoods include workaday spots like Great Kills, Staten Island; Floral Park, Queens and City Island in the Bronx. (There, 99 percent or more of buildings received an A grade.) In the West Village, on the other hand, 76 percent of properties scored an A rating. In the East Village, only 52 percent of properties got an A."  Another area that was highlighted is Elmhurst which received a 92 percent (92%) score and an A.

The worst neighborhoods according to the data was Tremont (Bronx) and Inwood (Manhattan). Nine percent (9%) of buildings in these areas scored an F.  This was followed by West Harlem (Manhattan) with 7.6% of their buildings scoring an F grade.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/two-queens-neighborhoods-score-high-in-rentlogic-survey-of-best-multi-family-rental-buildings/

Existing-Home Sales Drops For Fourth Straight Month, Drops Significantly in the Northeast

The National Association of Realtors (NAR) released their existing-home sales report for July and for the fourth consecutive month sales have been down.  The report indicated that existing-home sales are moving at the slowest pace in the last two year.  The Northeast had a significant drop in existing-home sales as affordability and inventory issues continue to plague the industry.

Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops fell 0.7% to an annual rate of 5.34 million for July.  The adjusted projected rate has declined from 5.38 million in June. Chief economist for the NAR Lawrence Yun stated  “Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million.  Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market.”

Median prices for existing-homes increased for the 77th consecutive month.  The median price jumped to $269,600 which increased 4.5% from July 2017.  Total housing inventory decreased to .5% to 1.92 million which is unchanged from the amount available at the same time last year.

On a regional level the Northeast saw the biggest drop in existing home sales for the month.  Sales dropped 8.3% to an annual rate of 660,000.  The median price for an existing home in the Northeast was $309,700.  This is an increase of 6.8 percent from the same time last year.  The Midwest saw sales decline 1.6% to a rate of 1.25 million in July.   The median prices in the Midwest was up 2.5% from 2017 to $210,500.  In the South, sales decreased 0.4% to a rate of 2.24 million in July. The median price in the South was up 2.7% to a price of $233,400.  The West was the only region to see an increase of 4.4%  to a rate of 1.19 million in July. Median prices in the West increased 5.1% to $392,700 from July 2017.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/existing-home-sales-drops-for-fourth-straight-month-drops-significantly-in-the-northeast/

PropertyShark Report for 2nd Quarter Shows TriBeca Remain As NYC's Most Priciest Neighborhood, Queens Has 2 Neighborhoods Hit $1 Million Dollar Mark

PropertyShark, an online resource provide in-depth data information for over 90 million properties nationwide produced their 2nd quarter of 2018 report of the 50 most priciest neighborhoods in New York City.  The report indicates that although there was a 26% year over year drop, Tribeca remained as the most priciest neighborhood in New York City.  Also around the city, Queens saw two neighborhoods hit the #1 million dollar mark and Homecrest in Brooklyn saw the most significant change in the median price change in the top 50 most priciest neighborhoods.  Manhattan had 9 out of the top 10 priciest neighborhoods throughout New York City.

In Manhattan, Tribeca is overwhelmingly the priciest neighborhood in the city with median sales prices for the quarter at $3,812,500.  As states prices dropped 26% year over year with a total of 62 transactions for the quarter.  SoHo remained at #2 with pricing at $2,925,00 which was an increase of 17% with 27 transactions.  The highest quantity of transactions in the top 50 were also in Manhattan.  The Upper East Side is tops on the list with 600 transactions followed by the Upper West Side with 579.

In Brooklyn there are two significant takeaways from the report.  The first is DUMBO is the most priciest neighborhood in all of Brooklyn and #3 overall in the city.  DUMBO saw prices increase 37% to a median sales price of $2,512,500.  There were 16 transactions overall in the neighborhood.  The second significant takeaway was in Homecrest Brooklyn.  For those unfamiliar, Homecrest is a neighborhood in Sheepshead Bay.  The borders are Kings Highway to the north, Avenue X to the south, Coney Island Avenue to the west, and Ocean Avenue to the east. Homecrest, the #45 most priciest neighborhood saw an overall increase of 80% to a price of $725,000 on 25 transactions.

Queens saw 2 neighborhoods hit the $1 million dollar mark.  Belle Harbor became the #16 most priciest neighborhood.  Belle Harbor saw an increase in price of 40% with median prices at $1,180,000 on 5 transactions.  Hunters Point came in at #25 on 49 transactions and a median price of $1,000,000.  Other significant neighborhoods coming in the top 50 in Queens were #34 tie East Flushing ($880,000.00), #34 tie ($880,000.00), #37 Auburndale ($856,500.00) and #38 Hollis Hills ($850,000.00).

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/propertyshark-report-for-2nd-quarter-shows-tribeca-remain-as-nycs-most-priciest-neighborhood-queens-has-2-neighborhoods-hit-1-million-dollar-mark/

Existing-Home Sales Gain In The Northeast As Trend Nationwide Continues to Decline

The National Association of Realtors (NAR) released their existing-home sales report for June.  The report indicates that existing-home sales decreased for the third straight month in June.  Although there were sales gains in both the Northeast and Midwest, lagging sales in the West and South resulted in overall decrease in existing-home sales by 0.6%.

Existing-home sales which is defined by the NAR as completed transactions which includes single-family homes, townhomes, condominiums and co-ops decreased to an adjusted annual rate of 5.38 million in June from revised 5.41 million in May. Sales are now down 2.2% overall year over year.

One of the major factors that has been hurting the market is the ongoing dearth supply of available homes in relation to demand.   Lawrence Yun, chief economist for NAR stated  “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining.  The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

Median sales prices once again hit an all-time high June at $276,900.  This amount is an increase from June 2017 of 5.2% ($263,300).  This is the 76th straight month of an increase of existing-home sales prices.  Housing inventory increased 4.3% to 1.95 million existing homes available which is 0.5 percent above a year ago.  Yun warned that despite this increase in inventory, the demand any growth.  Yun states  “It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.  Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

Regionally, here in the Northeast we saw a moderate gain.  Existing-home sales increased 5.9% to an annual rate of 720,000.  The median price in the Northeast was $305,900.  This is up 3.3% from June 2017.  The Midwest saw gains of 0.8% while the West -2.6% and South -2.2% saw declines.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/existing-home-sales-gain-in-the-northeast-as-trend-nationwide-continues-to-decline/

Home Sales Inventory Hitting All-Time Highs Throughout New York City According To New Market Report

StreetEasy  recently released their May 2018 Market Report and it is very promising for the future.  The market report which is a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets which aggregates data from public recorded sales and listing from real estate brokerages indicates that sales inventory is hitting all-time highs.  Manhattan in particular is increases year over year that is the highest on StreetEasy's record.  The figures are promising as inventory has been hampering the sales market for some time now.  These figures will hopefully allow buyers to have a better negotiating stance going forward.

According to the report, inventory in Manhattan rose 16.7% year over year which is the highest increase ever recorded.  Queens and Brooklyn saw increases actually higher than Manhattan.  Queens saw an increase in inventory of 42.8% while Brooklyn saw a 23.4% increase.  Although there was an increase in inventory, sales prices also increased throughout the three boroughs.  Queens is seeing all-time highs in home prices as there is a 9% year over year increase to a value of $544,587 or a $45,000 increase.

 Grant Long, Senior Economist for StreetEasy states the following: “Sellers are betting on a wave of demand from the peak shopping season, but this summer’s market has turned out to be a crowded one. However, prices are high and continue to rise. More affordable homes are the hardest to find, and are sure to sell quickly. But higher-end homes, particularly those joining the market from the ongoing stream of new development, will be pressured to lower prices or linger on the market. This summer is poised to offer an excellent negotiating opportunity for buyers with big budgets.”

Here are some of the highlights of the report per borough:

"Manhattan

• Sale prices rose in all submarkets but one. The StreetEasy Manhattan Price Index increased 0.6 percent to $1,157,995. Prices rose in four of the five submarkets, led by an increase in the Upper East Side, where the median home price rose 1.9 percent to $1,038,046. Prices in Downtown Manhattan remained flat at $1,691,204.
• Inventory rose at a record pace. Sales inventory in Manhattan rose 16.7 percent year-over-year. The Upper East Side experienced the largest increase, with inventory up 20.2 percent since last year.
• Fewer rentals offered a discount. Sixteen percent of rentals in Manhattan were discounted in May, a decrease of 1.6 percentage points from last year.

Brooklyn

• Prices reached new highs in North Brooklyn. The StreetEasy North Brooklyn Price Index increased 11.1 percent to $1,229,838, a record high for the submarket despite the looming L train shutdown. Borough-wide, prices rose by just 1.1. percent since last year, to $720,555.
• Sales inventory continued to climb, except in North Brooklyn. Sales inventory in the borough reached a record high — up 23.4 percent over last year. Inventory rose the most in South Brooklyn, which saw a 44.7 percent increase over last year. North Brooklyn was the only submarket where inventory dropped, by 6.7 percent since last year.
• Rents rose in all submarkets except North Brooklyn. The StreetEasy Brooklyn Rent Index increased 1.4 percent year-over-year to $2,562. South Brooklyn experienced the largest spike: up 2.6 percent to a median rent of $1,885. North Brooklyn was the only submarket where rents stagnated, likely because of the L train shutdown starting in April 2019. Rents in the submarket remained flat at $3,062.

Queens

• Sales inventory swelled. Queens saw the largest year-over-year increase in inventory, rising 42.8 percent. All five submarkets in the borough saw a surge in inventory.
• Queens was the only borough with an increase in the share of discounted rentals. Seventeen percent of Queens rentals offered discounts: up 2.9 percentage points over last year, and the highest share of the three boroughs analyzed."

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

 http://www.blueharbourpropertymanagement.com/home-sales-inventory-hitting-all-time-highs-throughout-new-york-city-according-to-new-market-report/

What NYC Property Management Companies Should Know About NYC's Smoking Policy On Residential Buildings

On August 28, 2018, the City of New York has placed as the deadline for all owners of all Class A multiple dwellings, including all cooperative corporations and condominiums to adopt a “smoking policy.  Local Law 147/2017 requires all buildings with 3 or more units to adopt a written policy with regarding to smoking on the premises.  What should be taken into account is that that smoking in the common areas of residential buildings such as lobbies and hallways has already been prohibited.  Also of note, this is not a smoking ban but a policy of smoking in residential units.  Property management companies in New York City should advise their boards in either condos and co-ops and owner of rental units of the upcoming Local law enactment.  They should also start preparing for the implementation in written form.

For condominium and co-operatives, it is implied that the board of managers (condos) or board of directors (co-ops) should adopt a written smoking policy and incorporate it into their by-laws as they would be considered owners. The law provides that “in a condominium, the board of managers shall incorporate the building’s smoking policy into the condominium by-laws or rules” and “in a cooperative apartment corporation, the board of directors shall incorporate the building’s smoking policy into the by-laws or rules of the cooperative apartment corporation.”  This issue that will become central is how will the boards have the ability to amend by-laws without unit owner or shareholder approval.  Amending the proprietary lease in co-ops will also be difficult and most of the time requires a super-majority of owners to do so.  How these boards resolve this issue is one that will be further analyzed as their policies get scrutinized by the City.

So now let's look at how the notice requirement can be met on this rule:
For purposes on residential buildings that are strictly rental the rules are the same without having board approval first which is necessary for condos and coops.  Once a board adopts a policy for smoking, it must be disclosed by “owner” to all “tenants”.  Tenants includes subtenants as well.  The smoking policy must either be provided to each tenant or posted in a prominent location.  A copy of the smoking policy must be provided to all tenants on an annual basis. The annual distribution can be given either by providing a copy to each tenant or by posting the notice in a conspicuous place.

For new tenants or resident the law provides that the condominium unit owner and cooperative tenant-shareholder incorporate the smoking policy into “any agreement to rent or purchase the dwelling unit or shares in the cooperative apartment corporation”.  Therefore it should be incorporated into all new leases going forward.
The penalties for not complying with Local Law 147 can be costly.  Specifically initial penalties will be between $200 and $400 for a first violation.  Second violations will be between $500 and $1,000 in a period of twelve months and between $1,000 and $2,000 for a third and subsequent violations in a period of twelve months.

With right amount of planning complying with new smoking policy in New York City should not be difficult.  For more information on Managing Smoke Free Rental you can click here.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

NYS Senate Passes Bill to Give A Property Tax Rebate To Homeowners From the NYC Surplus

The New York State Senate recently passed a bill authorizing the City of New York to give a property tax rebate to homeowners based on the projected surplus the City will have.  The bill sponsored by Andrew Lanza from Staten Island would authorize cities with a population of one million or more to provide a rebate of a portion of the real estate taxes on owner occupied residential real estate.  New York State Comptroller Thomas P. DiNapoli announced a projection that New York City will enjoy a surplus of $2.6 billion for this current fiscal year. This bill is based on these projection and would “empower New York City to share some of its prosperity with the hardworking families according to the press release.

The bill which you can read in its entirety here will affect residences up to 6 family units and tenant stockholders of condos and co-ops.  The rebate will be the lesser of up to $400 for the amount of the imposed annual tax liability on the property.   The bills allows the local law to be changed in order to give the rebate for the period between July 1, 2018 and ending at July 13, 2020.  In order to receive the rebate, the owner cannot be in arrears in an amount exceeding $25 for the year in which the rebate will be claimed.

Senate Majority Leader John Flanagan states, “There are very few places in New York where the cost of living for middle class homeowners is higher than in New York City. On top of that, the city property tax system is very unfair and the tax burden continues to rise at alarming rates. For years, our Senate Majority has been leading the charge to cut these out-of-control taxes and fees, and this legislation will help ensure that struggling homeowners in the five boroughs are given real savings.” Senator Lanza who sponsored the bill stated that he would continue the fight on burdensome real estate taxes.  “With the projected City surplus, this rebate will provide relief to hardworking taxpayers from the ever increasing burden of city property taxes. I urge my colleagues in the Assembly to pass it. I also thank Councilman Steve Matteo for his tireless efforts and leadership as he fights to deliver property tax relief to the people of Staten Island and New York City, and I will continue to work with him toward that end.”

The bill will not go to the Assembly where it will be scrutinized before a vote to occur.  Senator Martin Golden of Brooklyn called upon the Assembly to make the bill a priority for passage so it can be signed by Governor Cuomo.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nys-senate-passes-bill-to-give-a-property-tax-rebate-to-homeowners-from-the-nyc-surplus/

Northeast Existing-Home Sales Increase Despite Nationwide Downward Projection

The National Association of Realtors (NAR) released their report on existing-home sales for the month of May and it shows that the national trend of sales in the sector is trending downward for the second consecutive month.  All markets show a drop off with the exception of the Northeast which saw a 4.6% increase.  The numbers come as no surprise as inventory as well as increase mortgage rates are hurting the industry.

According to the report, which is considered completed transactions including single-family homes, townhomes, condominiums and co-ops, decreased 0.4% to a seasonally adjusted annual rate of 5.43 million for May. Sales are now down 3.0% from 2017.

Chief economist for the NAR Lawrence Yun stated “Closings were down in a majority of the country last month and declined on an annual basis in each major region. Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.” Despite seeing almost historic levels of decreased inventory there was an increase this month.  Housing inventory jumped in May 2.8% to 1.85 million existing homes available for sale.  It is worth noting that this is 6.1% lower year over year.

The Northeast was the only region that saw an increase in existing-home sales.  In May, sales increased 4.6% to an annual rate of 680,000.  This amount is still 11.7% below the same time in 2017.  The Midwest saw the most drastic decline in 2.3% followed by the West at 0.8% and the South at 0.4%.

Also of note, median existing-home price for all housing types hit an all time high in May at $264,800.  This is up 4.9% from May 2017 ($252,500) and the 75th straight month of increases.  Mortgage rates also increase for a 7th consecutive month to 4.59%.  The increase in both sales prices and mortgages rates are hampering first-time home buyers in entering into the market according to Yun.  “The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/northeast-existing-home-sales-increase-despite-nationwide-downward-projection/

NYCHA Admits to Misleading HUD. Will Pay $1.2 Billion In Next 5 Years to Fix Conditions In Affordable Housing

The U.S. Department of Housing and Urban Development (HUD)  reached an agreement with New York City to fix hazardous conditions in buildings under the control of the New York City Housing Authority (NYCHA).  The federal complaint which you can read here and filed on January 11, 2018 alleges that NYCHA violated basic health and safety regulations that protect children from lead based paint.  NYCHA also failed to provide safe and sanitary housing.  HUD and NYC have reached a settlement in the matter which a consent decree was filed.  The decree can be read in its entirety here orders NYC to provide $1.2 billion in additional capital funding over the next five years and $200 million every year thereafter until the problems are fixed.  A federal monitor will be set up in order for NYCHA to meet their goals under the decree.

According to the consent decree NYCHA's certifications to HUD contained untrue representations that they were complying with HUD’s federal lead paint safety regulations.  The complaint also alleges that NYCHA disguised the conditions of the properties in order to receive billions in federal funding.  Also of note are the following admissions:

• NYCHA’s data admits that there were more than 260,000 work orders for roaches between 2013 and 2016.  Between the same period there were 90,000 mouse work orders and 36,000 rat work orders.
• In more than half of NYCHA’s developments, NYCHA’s inspections, including statistical sampling, have confirmed the presence of lead paint somewhere on the premises, and in at least 92 developments, the inspections, including statistical sampling, have confirmed the presence of lead paint inside apartment units.
• Since at least 2010, NYCHA has not performed most of the biennial lead paint risk assessment reevaluations required by regulation for developments containing lead paint.
• Currently, after NYCHA has removed mold from apartments, the mold returns at least 30% of the time.
• In the winter 2017-2018, more than 320,000 residents or 80% of the public housing population lost heat.

The consent decree will allow NYCHA  resume spending from its existing public housing capital funding without seeking prior HUD approval.  HUD maintained an existing zero threshold for NYCHA which prevented them from using funds.  In a press conference today Mayor deBlasio requested that the state legislature release $550 million dollars that have been held for NYCHA since 2011.  He also requested from Governor Cuomo design-build authority which would allow the City to award a single contract for engineering and construction.

Ben Carson, HUD Secretary stated “This historic agreement marks a new era for New York City’s public housing, one that puts families and their children first. New York City and New York State are making an unprecedented commitment to put NYCHA on a new path. The cooperation of federal, state and city officials will vastly improve the living conditions for hundreds of thousands of New Yorkers who call NYCHA home.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nycha-admits-to-misleading-hud-will-pay-1-2-billion-in-next-5-years-to-fix-conditions-in-affordable-housing/

Market Survey Shows That New York City Construction Costs Remain The Highest Worldwide

Turner & Townsend, a multi-national company famous for their project management and program management consultancy work released their annual International Construction Market Survey.  According to the company,  the survey collects information from 46 international markets to determine to global state and direction of the market.  The survey indicates that New York City leads the world in construction costs for the second year in a row in the Turner & Townsend survey.
The five most expensive locations are New York City, San Francisco, Hong Kong, Zurich, and London. The survey looked at 6 different types of buildings in order to assess total building costs. 

The buildings that were taken into consideration were the following:

High-rise apartments
Office block prestige (Commercial office space)
Large warehouse distribution centers
General hospitals
Primary and secondary schools
Shopping centers including malls

Overall construction costs in New York City decreased 12 percent in 2017 and expenditures were measured at $45.3 billion.  This is the second highest on record after 2016. They are forecasting expenditures to hit $52.5 billion in 2018 citing recent tax cuts as an incentive for driving businesses back to the United State and specifically New York City.

Future developments will revolve around government fund and non-residential construction.  "Non-residential and government-funded construction will drive much of the growth in 2018 and 2019. Government expenditure is expected to reach USD16bn, with half spent in New York City.  New York is currently experiencing massive redevelopment.  The biggest project is the USD20bn Hudson Yards, which includes 18 million sq ft of commercial and residential space. The Long Island Express, a USD10bn transport project, includes a station under Grand Central. Meanwhile, La Guardia airport is adding a new USD8bn terminal. Employment in construction is at record levels with skilled trades in short supply."  The report indicates that the overall forecast looks bright driven by positive economic growth.  Construction costs will remain high as there is a shortage of skilled labor in NYC. 
The outlook nationwide looks rosy as well as construction costs hit an all-time high of $1.3 trillion last year.  Skills shortage and material costs continue to plague the industry.
On the salary side, New York City was second behind Zurich Switzerland where the average wage was $98.30 per hour in comparison to Zurich's $104 per hour.  The report did indicate that only high union wages were taken into consideration and did not include private sector rates.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/market-survey-shows-that-new-york-city-construction-costs-remain-the-highest-worldwide/

Landlord Responsibilities and Expectations for Lawn Maintenance

The summer months are ahead of us and now is the time that nature is really taking a toll on our lawns.  Most property management companies and property owners take the duty of maintaining their lawns seriously.  Having a presentable lawn brings substantial value to your property.  Some landlords also shift the responsibility to their tenants but most of the time it doesn't benefit the parties involved.  Since this is mostly the case, here is our suggestions in maintaining your lawns during the summer month.

Why tenants should not be responsible for lawn care
Sometimes owners and property management companies decide that it would be advantageous to have their tenants upkeep the lawns of their properties.   The customary agreement would be the landlord would reduce the amount of the rent by having the tenant take care of the lawn.  The reason some landlords decide to this is the time involved.  If you are a landlord with multiple properties it is time consuming to schedule with your tenant and having the work done.  Whether it be performed by yourself or using a lawn maintenance company there is a benefit, in theory in shifting the resources towards the tenant.
The problem in this situation is tenants sometimes neglect their responsibilities or do not perform the job that is expected.  Landlords should always have in writing what the expectations of lawn maintenance is for the tenants.  This is normally done as an addendum to the lease.  Whether it be just mowing the grass or the additional effort of removing tree limbs, weeds and using pesticides all of these issues should be addressed in an agreement.  The failure to do so will result in you having to do the work yourself or hiring someone, costing you additional monies.  Plus the added confrontation with the tenant is not beneficial to anyone involved.

Landlords responsible for lawn care
Without an agreement otherwise, the landlord or property management company is normally responsible for the maintenance of the property's lawn.  Although it may increase the cost to the tenant, the benefits to the owner far outweigh the added rent.

By taking on the responsibility of the lawn care, the landlord is in total control of the look and expectations surrounding the exterior.  In most instances, landlords in this situation find it advantageous to hire a professional lawn care provider.  By doing so, you now have the advice of professionals who understand what is needed as having their expertise and tools to handle any issue that might arise. The added benefit of fertilizing and reseeding when necessary is another great benefit of using a professional outfit.  Partnering with a company will certainly save a landlord time and in some instances money.  This is especially true if you have multiple real estate investments in New York City.

What is the right fit for you?
At the end of the day it does come to how comfortable you are with your tenants and the level of service you will receive.  In our experience, it advantageous to use experienced professionals to do the job.  No one wants to inspect their property and see dead dried out grass or overgrown weeds.   If you decide not to, remember always have it in writing what you are expecting!

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/landlord-responsibilities-and-expectations-for-lawn-maintenance/

Pending Home Sales Drop In April Amid The Ongoing Housing Shortage

The National Association of Realtors (NAR) is reporting that pending home sales for April decreased for the first time in three months.  NAR used a Pending home sales index which saw their reading drop to 106.4 for April.  The drop was 1.3% from March which saw the index level at 107.8.  Pending home sales have been adversely affected the the shortage of available housing available as the levels of housing is considered "dire" at this point.

Pending Home Sales Index is an indicator based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing according to NAR.
Lawrence Yun, chief economist doesn't see a change in sight unless more new and existing home sales hit the market.  The market is being affected by higher mortgage rates, increase home sales prices  and increased gas prices will affect the market ahead.  He states

“Pending sales slipped in April and continued to stay within the same narrow range with little signs of breaking out. Feedback from Realtors, as well as the underlying sales data, reveal that the demand for buying a home is very robust. Listings are typically going under contract in under a month, and instances of multiple offers are increasingly common and pushing prices higher. The unfortunate reality for many home shoppers is that reaching the market will remain challenging if supply stays at these dire levels.”

“The combination of paying extra at the pump, while also needing to save more for a down payment because of higher rates and home prices, may weigh on the psyche of those looking to buy.  For now, the economy is very healthy, job growth is holding steady and wages are slowly rising. However, it all comes down to overall supply. If more new and existing homes are listed for sale, it would allow home prices to moderate enough to stave off inflationary pressures and higher rates.”

It should be noted that although the inventory shortage, Yun still predicts an increase of existing home sales of .5 percent to 5.54 million.  Also of note in our region, the index indicates no change in the pending home sales index as it remained at 90.6.  This is 2.1 percent the same period last year.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/pending-home-sales-drop-in-april-amid-the-ongoing-housing-shortage/

Home Builder Confidence Increases in May Despite Drops In Housing Production

The National Association of Home Builders in association with Wells Fargo released their May housing market index.  The survey shows that home builder confidence for newly-built single-family homes increased two points to a level of 70 in May.  A number over 50 indicates that more builders view conditions as good than poor.  This reading marked the fourth time the HMI (Home Market Index) reached 70 or higher this year.  Although builder confidence remains high, housing production fell 3.7 percent in April to a seasonally adjusted annual rate of 1.29 million units according to the data from the U.S. Department of Housing and Urban Development and the Commerce Department.

NAHB Chairman Rany Noel states  “The solid May report shows that builders are buoyed by growing consumer demand for single-family homes.  However, the record-high cost of lumber is hurting builders’ bottom lines and making it more difficult to produce competitively priced houses for newcomers to the market.”

Optimism in the housing market is further forecast by the growing economy and demand for housing says Robert Dietz, Chief Economist for the NAHB.  “Tight housing inventory, employment gains and demographic tailwinds should continue to boost demand for newly-built single-family homes.  With these fundamentals in place, the housing market should improve at a steady, gradual pace in the months ahead.”

Overall production of housing is mostly attributable to multi-family startups.  Multi-family construction fell 11.3% to a seasonally adjusted annual rate of 393,000 units. Single-family construction remained was revised upwardly 0.1% percent to 894,000 units for March.

Reiterating mostly what Mr. Noel stated about costs associated with construction, Mr. Dietz believes that construction stats for single family homes are positive but builders have some hurdles with increases in prices of supplies.  “Single-family starts are up 8.3 percent for the first four months of the year relative to the start of 2017, which is higher than our forecast and bodes well for the rest of the year. However, builders must manage supply-side hurdles, such as ongoing building material price increases and shortages of land and labor, to meet growing housing demand. Lumber prices continue to rise, with recent increases adding more than $7,000 to the price of an average single-family home.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/home-builder-confidence-increases-in-may-despite-drops-in-housing-production/

Home Prices in Metropolitan Regions Jump 5.7% As Inventory Idles Near All-Time Low Levels

The National Association of Realtors (NAR) released their quarterly report on Metropolitan Median Prices and Affordability.  The report which you can read here shows that national median home prices for single family homes increased 5.7% from $245,500 from $232,200 from the same quarter in 2017.  The report which the NAR releases every quarter shows price data for single-family residences for approximately 175 Metropolitan Statistical Areas (MSAs).
The lack of inventory of housing fueled faster appreciation according to NAR.  Lawrence Yun, chief economist for NAR states:

“The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets. Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.  Realtors in areas with strong job markets report that consumer frustration is rising. Home shoppers are increasingly struggling to find an affordable property to buy, and the prevalence of multiple bids is pushing prices further out of reach.”

Overall, home prices last quarter increased in 91 percent of the markets that NAR takes statistics from.  They note that 162 out of 178 metropolitan statistical areas were showing sales price gains for the quarter in comparison the the same quarter in 2017.  Thirty percent of all metro area (53) saw double-digit increases which was up from 15 percent in the fourth quarter of 2017.

Another factor that is affecting affordability is rising mortgage rates.  The national family median income rose to $74,779 in the first quarter yet mortgage rates are wiping out any increase to an individuals' income.  Yun added “Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018.  Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year’s tax cuts. It’s simple: homebuilders need to start constructing more single-family homes and condominiums to overcome the rampant supply shortages that are hampering affordability.”

Of note here in the Northeast the report shows that existing-home sales decreased 8.5 percent in the first quarter.  The median existing single-family home price in the Northeast was $267,400 in the first quarter which is an increase of 4.6 percent from the same quarter in 2017.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/home-prices-in-metropolitan-regions-jump-5-7-as-inventory-idles-near-all-time-low-levels/

REBNY Report Indicates Third Straight Quarter of Decreased Residential Real Estate Sales in NYC

The Real Estate Board of New York (REBNY) published their first quarter report for 2018.  What it indicates is that residential real estate sales is down for the third straight quarter.  For the first quarter of this year, New York City residential sales were down 16 percent.  Total value of real estate transactions for the quarter was $10.3 billion in comparison to $12.3 billion for the first quarter of 2017.  The $2 billion decrease for the first quarter of 2018 was the largest year-over-year drop recorded since the third quarter of 2009 according to REBNY.

Total residential sales consideration decreased in three of the five boroughs.  Manhattan saw the biggest decrease in sales consideration for the quarter at 30% to $4.61 billion.  This was followed by Brooklyn -12% to 2.36 billion and Staten Island -1% to $711 million.   The Bronx saw an increase in sale consideration by 16% to $436 million in the Bronx and Queens saw an increase of 7% to $2.21 billion.

For the quarter, sales volume only increased in the Bronx by 8% to 998 for the quarter.  In the other boroughs sales were down led by Manhattan being down by 20% (2,417), Brooklyn by 15% (2,466), Staten Island  by 9% (1,338) and Queens by 4% (3,650).  Overall, the average sales price of a home in New York City during the first quarter of 2018 was $951,000, a seven percent decrease from the first quarter of 2017.

On a positive note, the average sales price for a one-to-three family dwelling in New York City overall has hit an all time high.  The average sales price of a one-to-three family dwelling in New York City was $791,000 which is a two percent increase from last year’s first quarter average.  With respect to the boroughs, Queens, the Bronx, and Staten Island all registered record highs for the first quarter. The average sales price for a one-to-three family dwelling increased 6% to $717,000 in Queens, 7% to $517,000 in the Bronx, and 9% percent to $563,000 in Staten Island.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/rebny-report-indicates-third-straight-quarter-of-decreased-residential-real-estate-sales-in-nyc/