New York City residents have been through a rough year, especially after the spring's COVID-19 circumstances. As the pandemic continues, many factors would seem to indicate that everything is dire. For example, a recent report issued by Unacast asserts that roughly 70,000 (net) residents have left NYC and, with them, about $34 billion. Additionally, they report that “Both the Retail (-33% foot traffic vs. 2019) and Restaurant (-34%) industries have and continue to suffer greatly in New York.” Similarly,
The New York Times reports that “Nearly 14 percent of office space in Midtown Manhattan is vacant, the highest rate in 11 years.” Property owners and investors have been concerned with good reason.
But there are some businesses and real estate properties that still are thriving in the city through collaboration, ingenuity, and speaking to the moment.
Need a Storage Unit?
With many buildings empty due to businesses closing, Neighbor, a self-storage platform similar to Airbnb, has become an alternative for property owners who are looking for ways to create revenue. According to the New York Business Journal, “For commercial property owners, rents for self-storage space listed on Neighbor vary based on how built out the facility is. And… the potential rents can still be fairly high relative to office or retail use, Woodbury said.”
Arthur Avenue, Little Italy in the Bronx
Arthur Avenue is a well-kept secret that is perhaps not such a secret any more. The New York Post reports on the market's growth during the pandemic: there have been six expansions or new restaurant openings over the course of the past few months. By June, the area was drawing nearly 20,000 visitors per day. Only one restaurant has closed since the pandemic began.
Focus on Health
MSN reports on how luxury properties in Manhattan have begun to incorporate high-end health services. Collaboration with health concierges, wellness destinations, and other wellness providers, enables the property developers to offer the concierge services and amenities.
Each of these examples offers insight into what we can learn about how to thrive, even as local businesses shutter or suffer from less traffic. Look for collaborative partnerships, for gaps in the market, and for opportunities to speak to what the current need is.
If you are a property owner who is concerned about foreclosure or being able to pay your rent, consider speaking with a real estate attorney today. They can help you explore your options and advise you on how to best approach this challenging time.