The ‘Frenzy’ for Manhattan Commercial Real Estate is Over


Real estate prices in Manhattan are skyrocketing, especially in areas that have been historically low-income. The Metropolitan Transit Authority, which owns much of the land for the subway system, is building luxury apartments in Upper East Side neighborhoods that were once home to subsidized housing. 

Commercial real estate in the city is also trending up, with prices over $100 per square foot. One reason cited for the increase is the changes to tax law enacted during President George W. Bush’s administration. 

Companies are instead offering tax incentives for their employees to move out of Manhattan and into newly built commercial properties elsewhere in New York state or even outside of New York City altogether.

The article identifies three major trends that are affecting commercial real estate in New York City. First, the tax benefits passed under President Bush are encouraging corporations to offer incentives for their employees to move to new properties outside of Manhattan. 

Second, non-profit organizations are selling their Manhattan properties and relocating elsewhere in New York State or out of New York City altogether. 

Third, the MTA is building luxury apartments on top of some subway stations where historically there were low-income housing projects.

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