New York retains its reputation as one of the most profitable locations for commercial real estate capital appreciation. Mainly, when it comes to multifamily properties, New York is an ideal market for investors who want to maximize their ROI.
Let’s discuss the latest developments in the multifamily CRE market in New York in 2020:
Increasing demand outpaces the supply
The New York multifamily market shows a positive outlook as the demand for affordable rental spaces outpaces the supply. In recent times, the vacancy rate of multifamily properties has hit a record low, mainly due to the low level of inventory as the construction work of new spaces has been put in halt due to pandemic.
Expanding technological presence
New York provides countless employment opportunities and attracts millions of Americans every year. As tech giants like Facebook and Google are planning to develop offices in The Empire State, it will increase the influx of millennials and tech professionals, which will further contribute to the existing growing demand for housing.
Reduced supply growth
Due to the COVID-19 pandemic, the construction of new multifamily properties is likely to be delayed. As a result, fewer properties will be available in the market. It will result in higher property prices in the foreseeable future. It’s an excellent opportunity for both short- and long-term commercial property investors to generate excellent returns on investment (ROI).
Increasing rents and long-term wealth generation
The low vacancy rate will result in higher rent growth of New York multifamily properties. Commercial investors can use this opportunity to create long-term wealth. Investing in multifamily commercial units will provide dependable rental income while the property appreciates the value.
The US banks have decreased the interest rates to combat the COVID-19. Moreover, the federal elections are right around the corner, which also contributes to extremely low-interest rates. It will increase the buying power of commercial investors. Using a hard money loan, investors can buy a property, make improvements, and flip it for lucrative profits.
About Global Capital Partners Fund
Based in NYC, Global Capital Partners Fund is a reputable private lender that offers a wide range of financing solutions, including hard money loans. The company has been serving the lending industry for over three decades, providing suitable financial plans to commercial investors. For more information about their services, call at +1-800-514-7350, or visit their website.