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Message from the Chairman: 2011 Market Recap
1.25.2012 / Robert Knakal
The New York City property sales market’s recovery is, generally, trending positive but remains uneven. In 2011, there were $25.6 billion of investment sales transactions city-wide. This figure is up 80% over 2010’s $14.25 billion. It is also over 4 times the $6.1 billion that occurred in 2009. These increases, while substantial, remain 58% below the 2007 peak of a whopping $62.2 billion. View Article

Greenwich Village & East Village Retail Study
1.25.2012 / Brendan Gotch
Massey Knakal’s Greenwich Village & East Village neighborhood expert, Brendan Gotch, recently concluded a study of the retail property in area. The study comprised mostly stores and restaurants, but also bars, clubs, ground floor offices, and other retail uses throughout the area. The results of the study showed an overall vacancy rate of 4.6%. We view this as a healthy level and have seen that empty spaces are getting reabsorbed fairly quickly. In fact, we think that this vacancy rate may even be slightly low,putting upward pressure on lease rates, as we have witnessed several higher than expected deals in the last couple months. View Article

Downtown Manhattan Commercial Property Sales Market: 2011 in Review
1.11.2012 / Nick Petkoff
The number of property sales in Downtown Manhattan, below Canal Street, increased to 35 in 2011 from 31 in 2010. This is still below the average number of sales, which varies between 40 and 50 per year. An interesting statistic this year is that, of the 35 sales, ten were note sales or pre-foreclosure sales. Distressed sales in the Financial District (FiDi) included: 264 Water Street, 33 Beekman Street, 111 Washington Street, 104-106 South Street, 375 Pearl Street, 40 Broad Street and 32 Water Street. Distressed sales in TriBeCa included: 345 Greenwich Street (retail condo), 408 Broadway and 177 Franklin Street. Six of the ten were vacant sites/conversions, similar to 2010, when seven out of the twelve distressed sales were development sites. View Article

2011 Year-End Market Update: North Queens
12.13.2011 / Stephen Preuss
Flushing went through another transitional year in 2011. Many residential development sites have either begun construction or are in the process of completion after two years of sitting as empty lots from stalled projects. As there is more accessibility to construction financing this past year, commercial development sites have also began to rise from the ashes. For most of Flushing, retail and office rental prices have stabilized in $60 and $30 per SF range, respectively while Main Street continues to be the aberration with rents as high as $100 per SF. For the most part, the vacancies of 2010 have been filled, Industrial properties have also seemed to catch their footing but still carry an approximate 10% vacancy rate. Multifamily apartment buildings have remained the most desirable investment for investors and lenders alike with little to no vacancy and extraordinary overall property value. View Article

Message from the CEO: Helping Investors Get the Job Done
11.7.2011 / Paul Massey Jr.
Investors (or buyers) are an essential element to every commercial real estate transaction, and Massey Knakal is keenly aware of this. As such, we provide much benefit to buyers/investors as well as our clients. Massey Knakal believes in two fundamental procedures that benefit our relationships with buyers, stemming from one of our key company values: integrity. View Article

Message from the Chairman: Third Quarter 2011 Market Update
10.25.2011 / Robert Knakal
The investment sales market in New York City continues to trend positively as third quarter 2011 (3Q11) statistics show. This may not seem so apparent when looking at the data in isolation, but drilling down into the numbers reveals a more telling message.In 3Q11, there was $6.5 billion in investments sales activity citywide which was down from the $8.7 billion which occurred in 2Q11. On face value, it might appear that this slow down in activity is a negative signal for the market. But, when we look at the numbers more carefully, we see that the medium-term trend is positive. Notwithstanding the $2.2 billion reduction in dollar volume in the third quarter, with the exception of 2Q11 results, the $6.5 billion in sales in 3Q11 was the highest quarterly total the market has experienced going all the way back to 3Q08. View Article

Go West, Young Man/Woman, Go West
9.20.2011 / Ryan Horvath
Replace “from sea to shining sea” with the less glorious “from river to picturesque river” and much like 19th century Manifest Destiny sentiment, New York’s promised future lies West. Take a stroll from 14th Street to 20th Street on the original High Line (Section 1) and soak in the cultural experience that is New York’s Meatpacking District. Then journey into the unknown from 20th Street to 30th Street on the new High Line extension (Section 2) to revel in what was and what will be. View Article

Message from the Chairman: What's Driving Investment Sales - And Holding Them Up
7.18.2011 / Robert Knakal
Market for properties over $100 M. chugging along; under-$50 M. market anemic; pessimistically hopeful on interest rates, debt ceiling debate View Article

Message from the CEO: New Focus
7.14.2011 / Paul Massey Jr.
In our most recent issue of the Massey Knakal Building Sales Journal, we outlined the firm's expansion plans, especially into our new disciplines: financing and retail leasing. We're pleased to report that since the first of the year, we've added ten top performers to our roster. View Article

Tourism Is Key To NYC Retail
5.12.2011 / Benjamin Fox
In general terms there is no question that retail rents in Manhattan have moderated somewhat over the last couple of years in response to the economic downturn. On the other hand, rents in certain high traffic retail corridors have not decreased all that much and in some cases have even risen during this period. Why is this happening? Why are all these stores flourishing? Have New Yorkers all of a sudden found spare cash in their pockets while the rest of the country is still struggling? Three questions, one answer: tourism. View Article

Message from the CEO: Help Wanted!
4.14.2011 / Paul Massey Jr.
Massey Knakal’s vision for the next few years is to double the size of the firm not only by expanding our geographic Investment Sales territory footprint but also to staff our Massey Knakal Capital Services and Massey Knakal Retail Leasing Services divisions. View Article

A Lesson on the Need for 421-a
4.13.2011 / Robert Knakal
It is imperative that our housing system include a 421-a type of incentive program. No one can argue that our market doesn’t need new market-rate and affordable-housing units. They can be created utilizing a program that doesn’t cost a dime (just like our no-cost widgets). View Article

Northern Manhattan: Manhattan's Final Frontier
1.31.2011 / Robert Shapiro
The robust year over year expansion in both dollar and transactional volume clearly signaled a recovery in Northern Manhattan. We believe this is only the beginning of a sustained upward trend as numerous factors will continue to stimulate and encourage growth. The tremendous deployment of capital into Harlem, Washington Heights and Inwood over the past real estate cycle has replenished the formally famished neighborhoods. Large scale institutional investments from hedge funds, international hotel chains, and Columbia University, have also played a significant role helping revitalizing the landscape uptown. View Article

The Threats to the Market in 2011
1.5.2011 / Robert Knakal
Inflation, devaluation, unemployment, the Fed and the feds: positive signs for real estate investment abound in the new year, but some things to watch View Article

West Chelsea Rezoning: Five Years Later
12.8.2010 / Brock Emmetsberger
It has been over five years since City Council adopted the West Chelsea Special District, and it appears the results have turned out as planned. In addition to spurring mixed-use development, the implementation of the special district has preserved the integrity of West Chelsea’s commercially zoned properties while fostering the growth of the area’s various galleries. As outlined in City Planning’s “Zoning Handbook”, the rezoning was to:“…[provide] a regulatory framework for the continued development of a dynamic mixed residential and commercial area centered around the public open space to be created by the reuse of the High Line...” View Article

Forecasting for Investment Sales
10.15.2010 / Robert Knakal
The two main metrics we discuss when talking about the relative health of the investment sales market are the volume of sales and the level of values. These two indicators provide the best snapshot illustrating how the market is currently performing, particularly relative to past performance. The volume of investment sales in the New York City marketplace has clearly been improving steadily since early 2009 (although third-quarter 2010 performance looks like it may have suffered a setback). Additional activity in the distressed-asset market, from both banks and special servicers, has helped with volume increases. View Article

Queens Marketplace May Be Picking Up
9.10.2010 / Swain Weiner
Could this, contrary to conventional wisdom, be a good time to sell your building? Conceivably, yes, depending on a number of conditions that might affect the market in general and your property specifically. View Article

Chasing The Market: Timing Vs. Pricing
6.30.2010 / Thomas Donovan
In certain segments and locations, the commercial real estate market has shown great resiliency and recently we were able to achieve relatively high sale prices for properly priced assets. However, other market segments remain more difficult to close transactions; some properties were not sold due to vacancy, a less desirable location, a lack of upside potential, or the property’s condition. View Article

The Investment Sales Mini-Bubble
6.30.2010 / Robert Knakal
When it comes to today’s investment sales market, the biggest question on everyone’s mind is the sustainability of the market’s present momentum. Can the currently elevated price levels continue on their current trajectory, or are we in a mini-bubble at a low point in this cycle? In order to answer this question, we shall look at present conditions and what they might say about where the market is headed. View Article

Message from CEO: Dominant in Bank Foreclosure Work
6.30.2010 / Paul Massey Jr.
The Massey Knakal team of 50 New York Metro Area agents utilizes our Territory System to make ours the company of choice for financial institutions looking to sell special assets. View Article

Northern Manhattan - Leading The Way Towards Recovery
6.2.2010 / Robert Shapiro
A sense of optimism has begun to return to the New York City real estate investment property market as transactional activity has been steadily rising quarter by quarter. Although this overall trend is being felt in neighborhoods all over the city, nowhere is this more prevalent than in Northern Manhattan (East & West Harlem, Washington Heights and Inwood). With over $116,000,000 in sales consisting of 35 transactions in the first quarter of 2010, it is clear that Northern Manhattan is experiencing one of the sharpest rebounds in activity. View Article

Valuing Properties In Today's Market
4.20.2010 / James Nelson
In a Manhattan property sales market where there were 63% less transactions in the first quarter of 2010, compared to the same quarter in 2007, how is it possible to accurately value a property? In some cases, such as multi-family sales, there have been enough sales to make a determination. Whereas with other product types such as land, it becomes a real art, as there have been virtually no sales. View Article

Message from the CEO
3.31.2010 / Paul Massey Jr.
Having recently undertaken a company-wide strategic planning exercise, we reaffirmed that Massey Knakal’s single competitive advantage is our Territory System™. Our territory platform is the cornerstone of our ability to provide 1)excellence in client service and 2)a workplace environment that is wonderfully unique. View Article

North Queens Market
3.31.2010 / Stephen Preuss
Flushing Area Arguably Queens’ most desirable real estate marketplace, Flushing, went through an eyeopening year in 2009. Dozens of residential development sites remain as vacant lots, construction sites have stalled, and those sites who were able to reach completion are sitting with many empty units or the constant churning of broken contracts. View Article

End Users Step Up To The Plate
2.10.2010 / James Nelson
Some would think that user groups would be paralyzed from purchasing in today’s transitional marketplace. However, many user groups are stepping up to expand their operations and take advantage of pricing that is well below previous levels. These organizations range from schools to cultural centers to foreign governments. View Article

Clear Skies Ahead For Washington Heights And Inwood
2.1.2010 / Robert Shapiro
As with the rest of the New York City investment property market place, Manhattan’s two most northern neighborhoods experienced a very trying year. However due to an abundance of medium sized, multifamily properties, they fared better than most. By thoroughly studying and dissecting real market data, neighborhood trends, and actively brokering properties everyday we are forecasting significantly clearer skies ahead in 2010. Readily available and attractive financing for this preferred asset class has also helped fuel a spike in activity in the Q4 2009 contract signings. The overall improved quality of life, decrease in crime, and geographical advantages, has also contributed to this sunnier outlook. View Article

Be Ready In 2010!
1.12.2010 / Swain Weiner
Most owners of real estate are not interested in selling today and would respond something like, “Sell, into this market? Not unless I absolutely have to!” Ah, but we are not saying “sell.” We are saying “prepare to sell.” A low point in the market cycle is an ideal time to evaluate your assets; consider whether you should make adjustments to your portfolio, decide which buildings you would sell first if you wanted to sell at all, and lastly determine what you will need to do to maximize your assets value. View Article

Why Sell In A "Down" Market?
9.16.2009 / Swain Weiner
Prices are at their lowest and financing has become more difficult. A buyer who might have been able to raise 85% leverage a couple of years ago might have to make do with 60% today. If they have to put more equity into a purchase, their offer is likely to be far below the seller's expectations. Additionally, with fewer investors able to get financing, there is going to be less competitive bidding on most properties. View Article

Positive Signs In The New Investment Sales Market
7.8.2009 / Robert Shapiro
Overall, the beginning of the 2009 investment property market was nothing to write home about. However, as we bring the second quarter to a close and head into the second half of the year, we have begun to see some positive signs within the marketplace. A modest pick up in velocity at the end of Q2 has provided hard comparable sales data for today’s “new market”. With this new information we can now begin to draw some significant conclusions. Many people in the real estate community believed that there would be a flood of foreclosure properties coming to the market place. This has not happened thus far and in-turn has had a stabilizing effect on market values. Multifamily property owners also received some positive news from the shake up of the New York State Senate. A change in power in the State Senate has dealt a significant blow to supporters of the Bill State Legislation to reform housing. View Article

Queens: A Safe Bet In Today's Market
7.1.2009 / Swain Weiner
Despite the cries of doom we hear from many outside observers of New York City's real estate market, many of our sub-markets remain strong—especially with regard to multifamily and retail properties. In particular, the stars have aligned to favor Queens as an investment venue, especially in the smaller mid-priced apartment buildings in up and coming neighborhoods, or retail properties near transportation hubs. View Article

Is the Current Sample of Comparable Sales Relevant?
6.15.2009 / Brock Emmetsberger
Since comparable sales are lagging indicators to begin with, a significant sampling from the third and fourth quarters of 2008 is now all but relics of better days. Without relevant comparable sales, the next applicable indicator would be recent neighborhood contract signings for similar properties. View Article

North Corona Queens' Northern Boulevard Growth To Be Stifled Before It Gains Full Potential
2.3.2009 / Swain Weiner
Northern Boulevard in Corona, Queens has been undergoing a major transformation that has been benefiting everyone in the area. This was the result of rezoning changes that were adopted on September 17, 2003. The changes were designed to support ground floor retail uses and mixed-use development by matching commercial overlays with existing development patterns. The former commercial overlay districts did not reflect actual patterns of street-level retail uses. The rezoning also included upgraded Floor Area Ratios for residential streets which increased population density. View Article

Maximizing Profits From An Estate Sale
1.28.2009 / Thomas Gammino Jr.
When it is imperative that real property from an Estate must be sold, it’s no surprise that the seller’s primary goal is to maximize profits. However, in today’s market the reality of these ‘need-to-sell’ scenarios is that Estates are not getting the most from a sale. Too often, an Estate ends up in a situation where they pay more in taxes than they should AND realize fewer dollars from a sale than they could. How much more? In some cases millions of dollars. Although you can’t avoid paying taxes, you can strategically--and legally-- minimize the potential tax burden and maximize your proceeds from a sale by understanding what influences an Estate’s tax liability and knowing where to go to get this information. View Article

Does LES Equal More? Much More.
12.16.2008 / Michael DeCheser
Statistically the most diverse neighborhood in Manhattan , it’s no wonder the Lower East Side in Manhattan attracts everyone from struggling musicians to wealthy celebrities. The age old destination for many newly arrived immigrants has evolved to become the destination of choice for those looking for culture, art, music, fine dining and nightlife. The influx of development has struck fear into longtime residents that the neighborhood character will be lost, but that is most certainly not the case. LES staples such as Katz’s Deli, Russ & Daughters, Guss’ Pickles and other establishments continue to thrive. View Article

Downtown Looks Up
12.8.2008 / Robert Burton
As the national spotlight targets the banking and real estate industries, analysts are divided over the future of NYC real estate, especially in regards to the last six months. In spite of what news sources have said about the current state of the market, we have found that although activity has been slow through late spring and the summer, prices have not decreased. However, there remains a static gap between what a seller expects their property to fetch and what a buyer can afford to pay given the lending situation. Larger property sales (over $50 million) have come to a virtual standstill, especially since banks have tightened their lending standards, expecting a higher return with some type of recourse in the event of a default. View Article

Demolition Non-Renewal - Fair Or Foul?
11.11.2006 / Thomas Gammino Jr.
Rent stabilized buildings traditionally have not been a target for developers. In order to vacate buildings, developers typically pay exorbitant amounts of money to current tenants, sometimes five, or in same cases, even seven-figure buyouts. Section 9 NYCRR § 2524.5 of the Rent Stabilization Code has changed that. Although not well-known by most developers or tenants, this section has significant implications on both parties, and has shifted the advantage from the rent-stabilized tenant to the developer in a buyout scenario. View Article