March 28, 2019
Citywide, not-for-profit and public sector leasing and investment activity last year was off 6% from 2017 levels, Cushman & Wakefield’s Richard Persichetti reported. Within that total, though, investment sales rose 54.6% year-over year, mainly on the sell side and outpacing the city as a whole.
Expect the trend of not-for-profits monetizing real estate to provide more value options this year among pre-1980s assets, as some 30 million square feet of new construction is occurring citywide, Persichetti writes. Other trends to watch:
• Most public sector organizations will strive to remain in Manhattan
• Organizations with budget constraints will look for less expensive space with easily accessible public transportation, mainly outside Manhattan
• Religious organizations will continue to sell or ground lease surplus property as they rationalize their real estate portfolios
• Organizations will prioritize limited resources to accommodate more collaborative, modern work environments, and support maintenance of outdated real estate assets
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