- Real estate transactions in Queens are rising, but total investment sales value decreased by 7% in 2024 compared to 2023.
- The drop in investment sales is attributed to fewer institutional transactions, especially during the latter half of the year.
- Development sales reached their lowest since 2012, excluding the pandemic years.
- The multifamily market shows growth, with transactions increasing by 10%, driven by stability from the Good Cause Eviction law.
- New opportunities like the 485-x tax exemption program and City of Yes initiative offer potential for growth in 2025.
- Investors are attracted to redevelopment opportunities, notably around JFK Airport, highlighted by Terreno Realty’s significant acquisition.
- A stable political and economic environment post-election in 2025 is expected to encourage more investment in Queens.
Queens, the often-overlooked borough of New York City, finds itself at a curious juncture. While real estate transactions are on the upswing, the total value sees a dip. In 2024, the canvas of Queens’ commercial landscape painted an intriguing portrait: more strokes on the board, but with a lighter hand.
Amidst an increase in transactions, investment sales in Queens tumbled by 7% compared to 2023, folding down from a flourishing $3.18 billion to a more tempered $2.95 billion. This unexpected dip emanates largely from fewer institutional transactions, especially evident during the latter half of the year. Development sales bore the brunt, plummeting to their nadir since 2012, barring the pandemic blip.
However, beneath this numerical paradox lies a stirring of optimism. The leafy allure of stability, extended by the Good Cause Eviction law, has transformed the multifamily market into fertile ground. A predictable climate for tenants has sparked a fire in transactions, kindling a 10% increase. Queens seems to be shaking off its cautious cloak, nudging investors to embrace possibility over prudence.
With the dawning of new opportunities like the 485-x tax exemption program and City of Yes initiative, 2025 beckons with the promise of rebirth. Crafty investors are eyeing the redevelopment at JFK Airport, where significant trades, such as Terreno Realty’s $246 million dive into an industrial portfolio, underscore a budding confidence in Queens as a linchpin for growth.
The year 2025 whispers of potential. With the air cleared by a stable political and economic climate post-election, the stage is set. Investors are expected to loosen their defensive stances, poised to capitalize on this evolving landscape where Queens might finally take its deserved place in the spotlight.
Unlocking Queens’ Real Estate Potential: How 2025 Holds the Key to Transformative Growth
How-To Steps & Life Hacks for Investing in Queens
If you’re considering investing in Queens’ real estate market, here are some steps and tips to guide you:
1. Research Emerging Neighborhoods: Identify neighborhoods with upcoming developments or improved infrastructure, such as areas around JFK Airport that are experiencing a redevelopment boost.
2. Understand Local Legislation: Be familiar with laws like the Good Cause Eviction law and the 485-x tax exemption program, as they can significantly impact your investment returns.
3. Utilize Local Expertise: Work with local real estate agents and brokers who have intimate knowledge of the Queens market. They can provide insider insights that can make a difference.
4. Focus on Multifamily Properties: With the multifamily market showing stability and growth, consider multifamily properties as part of your investment portfolio.
5. Evaluate Long-Term Growth Potential: Look for opportunities that might not yield immediate high returns but hold significant long-term growth potential, particularly around infrastructural developments.
Real-World Use Cases
The redevelopment of JFK Airport is an excellent example of how infrastructure projects can boost local real estate. As the project progresses, nearby land values are likely to appreciate, benefiting early investors who have acquired properties in the area.
Market Forecasts & Industry Trends
According to industry experts, the Queens real estate market is projected to stabilize in 2025, with the political climate post-election becoming more favorable for investment. Trends suggest a shift towards sustainable and green building practices, which could become a cornerstone for future developments.
Reviews & Comparisons
Compared to other NYC boroughs, Queens offers a balance of affordability and potential for growth. Brooklyn and Manhattan may still lead in terms of luxury developments, but Queens presents a compelling case for diverse investment opportunities.
Controversies & Limitations
Despite the optimism, challenges remain. The noticeable dip in institutional transactions suggests caution among large-scale investors. Additionally, some developers are concerned about potential restrictions on future zoning laws and construction permits, which could limit growth.
Features, Specs & Pricing
As of 2024, commercial property prices in Queens range from $500 to $1500 per square foot, varying by location and type. Multifamily units tend to attract mid-level pricing, generally offering good rental yields relative to initial costs.
Security & Sustainability
With environmental sustainability becoming critical, investors are increasingly prioritizing eco-friendly developments. Green certifications are becoming a standard requirement for securing certain types of funding or tax incentives.
Insights & Predictions
Queens is poised to be a central hub of commercial growth in New York City in the next few years, driven by infrastructural upgrades and favorable policy changes. The potential for job creation around development projects will likely enhance residential demand.
Tutorials & Compatibility
To invest successfully in Queens, familiarity with platforms like CoStar for commercial listings and Upstream for property management can be beneficial. These tools provide valuable data and simplify investment management.
Pros & Cons Overview
Pros:
– Emerging market with high growth potential.
– Stable multifamily market.
– Favorable government incentives.
Cons:
– Current institutional investor caution.
– Possible legislative hurdles.
– Local economic dependencies on infrastructure projects.
Actionable Recommendations
– Engage with local communities: You will gain insights into neighborhood dynamics and potential social impacts on your investment.
– Stay up-to-date with market reports: Regularly review reports from real estate analysts or subscribe to industry updates.
– Join real estate investment forums: Engage with other investors in forums like BiggerPockets to learn from their experiences.
For continuous updates and insights into the real estate market, consider following resources like Realtor and Zillow. By aligning your investment strategies with current trends and forecasts, you can unlock the potential that Queens holds for 2025 and beyond.
