If you're interested in buying commercial real estate then you should know about the current state of real estate in New York. At the moment, real estate has come to a head with extremely high prices. Since prices have peaked, meaning that prices now are as high as they are likely to go, and they may even begin to dip. If you buy now, you could end up spending more than if you wait a short time before you invest.
In economics 101, you learn that prices that go up can come down. The current economy in the United States has been strong since it is bouncing back from the recession. The problem with that is that economies do heat up and cool down. What you want to avoid doing is purchasing a property when it is at its highest price. If you do that, you may not see the appreciation of the property and instead see a decrease in its value.
New York City is known as a gateway city market. That means that it brings the attention of global investors. The prices there are much higher than the traditional domestic market. At some point, prices get so high that they don't make sense for anyone who wants to invest. That is what is happening now in 2017.
The average commercial rent in the city has fallen 8 percent between the first and second quarters of 2017. The expected rate of return from commercial properties has also dropped, which means making less money on your purchase if you choose to rent it out.
If you do decide it's time to buy or sell, make sure you know that you're protected by having a professional review the terms of the sale. The economy is balancing out, so you should be offered fair terms.
Source: Market Watch, "Opinion: Why you should be worried about this part of the New York real-estate market," Brian Watson, July 24, 2017