Investment Forecast – 2019 NYC Multifamily

Amazon, Google Expansions Highlight Increasing Tech Presence, Driving Apartment Demand in Boroughs

Announcements by tech giants set stage for next phase of growth in New York City. Following the recent announcements by Google and Amazon to undertake vast expansions of their office foot-print and workforce, the New York City metro has set the stage for robust growth stemming from the tech sector. While Google will be expanding in Lower Manhattan, Amazon has opted for Long Island City in Queens, bolstering demand for housing throughout the city. Developers have taken note, swelling the pipeline for new rentals in core neighborhoods of Manhattan, as well as several prominent locations in Brooklyn and Queens. Additionally, the size and scope of projects remains exceptional, highlighted by the redevelopment of the Domino Sugar factory in Williamsburg into a mixed-use structure and 5Pointz in Long Island City, a two-building, 1,115-unit undertaking. While construction remains elevated, supply growth has rolled over from the cycle high reached in 2016, allowing rent growth to reaccelerate, particularly in Manhattan and western Brooklyn along the East River. Vacancy remains extremely tight as well, and it is set to stay below 2 percent through this year.

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