Asset Class Breakdown: 2025 Opportunities in NYC
A forward-looking analysis of where value creation opportunities exist across office, multifamily, retail, and development sites entering 2025.
As we enter 2025, each asset class presents distinct risk-reward profiles. Understanding where capital can work hardest requires parsing fundamentals from sentiment.
Office: The Conversion Play
Well-located, conversion-eligible office buildings represent the highest upside potential for patient capital. The 467-m tax abatement creates compelling economics for the right basis and building profile.
Multifamily: Stable but Competitive
Multifamily remains the most liquid sector with compressed cap rates reflecting strong fundamentals. Rent-stabilized portfolios may offer opportunity as regulatory clarity emerges.
Retail: Location, Location, Location
Prime Manhattan retail has recovered to near pre-pandemic rents. Secondary locations remain challenged, creating a bifurcated market with opportunity for contrarian positions.
Development Sites: Patience Required
With construction costs elevated and financing challenging, well-located sites are trading at discounts to replacement cost. Patient capital with long time horizons may find value.
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