The construction and development market in NYC saw a surge in 2012. According to the New York Building Congress, the number of building permits issued increased 19 percent from 2011 and up a total of 74 percent from the economic downturn of 2009. Queens is already showing a lift in development activity this year.
It is obvious that the market activity is still not quite that of boom-time construction levels between 2005 and 2008, but there is confidence that construction activity is on the upswing, according to the NYC Buildings Commissioner Robert LiMandri. Last year was a precursor of new development to come this year.
We have already started to see great activity in Queens; the low stock of development sites has rooted an increase in demand. I have obtained aggressive offers in the Northern Queens market for the supply available. A notable development site in my area located on Northern Boulevard in Bayside has received great feedback from potential buyers. The property contains 10,080 buildable square feet and is currently being used as an auto garage and large parking lot, surrounded by national retailers showing a rare opportunity with great development potential, we are fielding offers close to $200 per buildable SF.
Similarly another highly desirable site assemblage located on 144-40-42 35th Avenue in Flushing is experiencing heavy activity. Sitting just one block off of Northern Boulevard in a high traffic area, it is attaining offers for over $150 per buildable square feet, and also provides a community facility bonus of 33,460 buildable square feet, proving to be a favorable prospect.
Richard Anderson, Building Congress stated, “The residential market is steadily climbing back from the doldrums of 2009 and 2010…While we are likely to remain well below the peak attained in the middle of the previous decade, the latest data is encouraging nonetheless.”
I am expecting to see the development market continue to peak great interest in NYC this year, with especially increasing activity in Northern Queens.