Commercial Real Estate Price Per Square Foot Nyc
Commercial real estate in New York City has always been a hot topic, especially when it comes to price per square foot. The city that never sleeps, known for its towering skyscrapers and bustling streets, is home to some of the most expensive commercial real estate in the world.
What is Price Per Square Foot?
Price per square foot is a common way to measure the value of commercial real estate. It is calculated by dividing the total price of a property by its total square footage. This method is used to compare properties of different sizes and locations.
Factors Affecting Commercial Real Estate Price Per Square Foot in NYC
There are several factors that affect the price per square foot of commercial real estate in NYC. These include:
- Location - Properties located in prime areas such as Times Square, Midtown Manhattan, and Downtown Brooklyn command higher prices per square foot.
- Building Class - Class A buildings with modern amenities and infrastructure are more expensive than Class B or Class C buildings.
- Building Age - Older buildings may have lower prices per square foot due to their outdated design and infrastructure.
- Market Demand - In a seller's market, prices may increase due to high demand and limited supply.
- Building Size - Larger buildings may have lower prices per square foot due to economies of scale.
- Building Condition - Buildings in good condition and well-maintained may have higher prices per square foot compared to those in poor condition.
Price Per Square Foot for Commercial Real Estate in NYC
The price per square foot for commercial real estate in NYC varies depending on the location and building class. According to a report by CBRE, the average price per square foot for Class A buildings in Midtown Manhattan was $141 in Q2 2021, while the average price per square foot for Class B buildings was $85.
In Downtown Brooklyn, the average price per square foot for Class A buildings was $66, while the average price per square foot for Class B buildings was $42. In Long Island City, the average price per square foot for Class A buildings was $50, while the average price per square foot for Class B buildings was $36.
Conclusion
Commercial real estate in NYC is a lucrative investment opportunity, but it comes at a high price. The price per square foot is influenced by several factors, including location, building class, age, market demand, size, and condition. It is important to do your research and work with an experienced real estate agent to find the best deal for your investment.