It’s no secret that real estate in Long Island City is booming.
Thousands of apartments have been built within the last decade and land prices have risen to historic highs. With the influx of residents, the retail side is witnessing growth and more offices are moving across the East River.
In front of hundreds of real estate industry members at the LIC Partnership’s ninth annual real estate breakfast on Wednesday, experts agreed that it’s a good time for the area as it blooms into one of New York’s most desirable neighborhoods, and that real estate activity is set to multiply.
“Today’s breakfast featured a very enthusiastic discussion among some of the area’s industry leaders on the growth and demand for real estate in Long Island City,” said David Brause, president of Brause Realty, who moderated the panel discussion at the event. “The general consensus is that it’s a great time to be in this market, and that the area will only continue to take off in the coming years.”
More than 8,600 residential units have been completed in LIC since 2006, and more than 22,500 units are in the planning or construction phase, according to a LIC Partnership analysis released simultaneously with the event.
Some additional growth may come by way of the Sunnyside Yards — a rail yard used by Amtrak, the MTA and New Jersey Transit — where Mayor Bill de Blasio hopes to develop 11,250 affordable housing units, schools, open spaces and community facilities. The city’s Economic Development Corporation will announce the company that will perform a yearlong feasibility study for that plan in the coming weeks.
If accomplished, the Sunnyside Yards plan could again expand LIC, but panelists at the event weren’t immediately on board with the ambitious idea, which has been pitched for decades by various figures.
“My attitude is every time everyone gets all these visions, I’m like you know what I don’t have time for this,” said panelist David Dishy, president of development and acquisition at L+M Development Partners.
One thing that is clear is that more and more people want to buy homes and stay in LIC. To meet the high demand for homes — and rising land values — developers are pushing to build more condos.
However, buying residential property in the neighborhood is also becoming a pricey endeavor. The average price for condominiums in the first three months of 2015 was $678,333 for a studio, $820,000 for a one-bedroom apartment, and $1.1 million for a two-bedroom unit, according to the LIC Partnership analysis.
The neighborhood has also emerged as a hotel destination for New York City. More than 20 hotels have opened in the area in seven years and 26 more are planned or currently under construction, the Partnership said.
The foot traffic increase in LIC has helped fill in vacant spaces on retail corridors, but for most it’s still hard to pinpoint the neighborhood’s Main Street.
“It’s hard to point it out, but I would say Vernon [Boulevard],” said Matthew Baron, president of Simon Baron Development. “There’s really no Main Street, but I think that’s okay.”