In March, we discussed the development market in Flushing. Over the past couple of years, Flushing has been experiencing a rapidly increasing development market.
Approvals for multiple mega mixed-use projects were carried through — for example, the Willets Point project, Flushing Commons, and multiple hotel sites, including the Intercontinental Hotel at 36-18 Main Street, are in the development works.
Another topic of discussion in 2014 was potential upzoning for West Flushing, which would allow for increased residential development in order to provide for the dense flow of residents in Flushing. But although we have been seeing record pricing in 2015 as previously discussed, recently we have seen a lag in available land for development while demand is still rising.
Flushing has long been considered as a development Mecca in northern Queens. Its population is rapidly and consistently rising. Predominantly Asian, it is a thriving city for Asian culture, earning the name “the Chinese Manhattan.” Residential condos are selling at record prices — up to $700 per square foot for a two-bedroom condominium — and apartment rentals are seeing up to $2,000 and beyond per month for a one-bedroom. So it is no wonder downtown Flushing and its greater area has kept developers bullish over the potential.
Flushing Commons and the Willets Point project reach a square footage capacity upwards of 500,000 square feet. The amount of land left in Flushing to accommodate another project like that of Flushing Commons is significantly lacking.
We have been recently retained to sell 30-05 Whitestone Expwy. in Flushing. The site boasts 80,510 square feet of lot area with proposed plans for rezoning for a potential 523,315 buildable square feet for a mixed-use project or hotel development. Its location is within minutes from LaGuardia Airport and blocks away from downtown Flushing with great visibility from the Whitestone Expressway.
As previously discussed, the lack of space available has been a hindrance for developers — this site could serve as a rare opportunity for developers looking to capitalize on the little space Flushing has left.
Stephen R. Preuss is an executive director in the Capital Markets Group of Cushman & Wakefield, where he focuses on investment sales for various Queens neighborhoods. He has transacted in over $1 billion of investment and commercial real estate over his 15 year career. During his tenure, he has sold over 125 properties to date with an aggregate value of over $650 million.