Post-Election Security Measures Are Wreaking Chaos On Midtown Real Estate Market
While the long-term Trump effect on the industry remains unclear, the state of Midtown real estate is already a hot mess.
As the country is dealing with the presidential election aftermath, the hottest conversational topic among real estate professionals is the effect that the upcoming Trump rule might have on the industry. While making any long-term predictions is an exercise in futility, we can surely focus on how Trump’s election is currently impacting NYC real estate market.
Let’s start with an apartment market in Midtown. Political views aside, we at Agorafy will state the obvious: These days, living anywhere near Trump Tower sucks—because of all the security measures. According to DNAInfo, the Tower’s residents have to call the front desk to get clearance every time they want to leave the building. The neighbors’ lives aren’t that rosy either—walking down Fifth Avenue now is taking about an hour (And you thought that the worst possible thing was being stuck in Times Square behind slow-walking tourists – Ed.).
Given the fact that Trump’s family isn’t moving out after his inauguration, it is no wonder that lots of local residents are considering moving elsewhere—currently, there are 15 rental units and 15 apartments for sale in the Tower. According to Compass’ broker Victoria Shtainer, chances are more listings will hit the market soon. So, there is definitely supply—but what about demand?
Well, it looks like there is none—at least, for now. Potential buyers aren’t exactly enthusiastic about properties, no matter how glamorous, that are surrounded by police and barricades. DNAInfo reports that some of the listings in the vicinity are already seeing price drops.
To sum the whole thing up, not only living in Midtown is a nightmare for local homeowners—there is also no escape from it. We at Agorafy would just make an educated guess and predict the ongoing downslide in Midtown asking prices—at least, for the time being.
Another curious trend to examine would be the state of retail market in Midtown. As Agorafy recently reported, the Fifth Avenue retail stretch is already experiencing difficulties as it is, with landlords having hard times to fill in spaces, and tenants struggling to make rents. And now comes another blow—with all this congested traffic and police barricades, foot traffic in the vicinity has dampened, creating otherwise unthinkable phenomena—empty high-end boutiques in prime season.
Which means that “celebrity” retailers, such as Prada and Tiffany&Co., as well as the so-called mom-and-pop stores, are about to fall on hard times and face shrinking sales—while the asking rents for those [now] empty stores are hitting $3,213 a square foot. Ouch.
How long Midtown will remain a real estate hot mess, is the great unknown. For the simple New Yorkers, who own no multi-million condos or high-end boutiques on Fifth Avenue, one thing is clear—our favorite activity, holiday window shopping, is officially cancelled this season. Impulsive purchases – no more.
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