Which Real Estate Projects Will Transform NYC in 20 Years?
From Wall Street to Yorkville in Manhattan, as well as in Brooklyn and Queens, NYC real estate projects are booming. Factors such as the completion of buildings at the World Trade Center and the opening of the Second Avenue subway will drive both residential and commercial real estate markets over the next 20 years. The revitalization of long-abandoned areas is also transforming other sections of the Big Apple. (For more, see New York City Real Estate: A Safe Haven?)
Two New NYC Real Estate Projects: Yorkville and One World Trade Center
Yorkville started seeing premiums in pricing and new development in 2014, before the Second Avenue subway had its first phase completed on January 1, 2017. Now that the line is fully operational up to 96th Street (and maybe being extended to 125th Street), the upgrading of the neighborhood it serves will surely continue. The downside? The cost of living there is going to go up. Apartment renovations and condominium upgrades are happening throughout the area. These will likely be followed by the revitalization of commercial buildings.
The opening of One World Trade Center in 2014 was just the start of major change for Wall Street. By 2020 the revitalization will be complete, bringing two more towers along with a performing arts center, retail mall and church. As businesses return to fill the new towers, tip-of-the-island real estate will probably see a further rebirth.
And More in the Works
The two projects above will account for only a small part of the developments affecting New York City over the next 20 years. Others on the horizon include:
- Essex Crossing – Those seeking housing for low-, moderate-, and middle-income residents will have a new place to look in Manhattan’s Lower East Side at Essex Crossing. This $1.1 billion dollar development will include a Regal movie theater, new street market, bowling alley and cultural space. It is being built on a site mostly occupied by parking lots today, the result of the failure of Robert Moses’s 1960s urban-renewal scheme. Completion is expected by 2024.
- Hudson Yards – This 28-acre development on Manhattan’s West Side, bounded by 30th and 41st streets and 10th and 11th avenues, will cost about $20 billion dollars. It includes 33 smaller projects and will create a new neighborhood offering residential units, restaurants, office buildings and a public square. Prior to this development, the area was a railyard and an off-loading space. Completion is expected by 2024.
- Hunters Point South – Affordable housing will be a priority at a 30-acre development in Long Island City, Queens, called Hunters Point South. More than half of the 5,000 units will be offered at below the market rate. This site will also have a school, restaurants and a waterfront park with a ferry. No firm completion date has been announced.
- Pacific Park – You may know this area as Atlantic Yards, but it is being transformed into a $6 billion project called Pacific Park. Located in Brooklyn’s Prospect Heights, it will include 6,430 apartments (with 2,250 priced below market), an eight-acre park and a variety of shops. Completion is expected in 2025.
- Industry City – Industrial buildings that date back to the 1890s are being renovated in Brooklyn’s Sunset Park area. The new Industry City will include a hotel, shops and 16 buildings targeted for tech startups. No completion date has been announced.
Several other projects are in various stages of approval and funding. These include two waterfront properties: a $1.5 billion makeover of the Domino Sugar factory in Williamsburg, Brooklyn, and the $580 million St. George outlet mall and observation wheel on Staten Island.
The Bottom Line
New York City will see many new neighborhoods in the next 20 years, and several of the projects will offer more-affordable housing as well as expanded industrial and retail space. New businesses will bring new jobs as the city that never sleeps continues with its eternal metamorphosis. (For more, see 3 Ways to Invest in New York City Real Estate.)