Commercial property

NYC brokers stay positive while waiting at the office

New York City Skyline. Image by ben o’bro via

Realtors’ confidence in the real estate market continues to decline, but their attitude hasn’t crossed the line into a state of negativity, according to the Real Estate Board of New York’s Q1 2022 Realtors Confidence Index. .

Participating brokers’ confidence in commercial and residential real estate declined for a third consecutive quarter, and their six-month outlook was also less optimistic. Still, positivity abounds.

The current business confidence index remained somewhat stable, falling from 17.89 in the previous quarter to 17.05. For the first time since the appearance of COVID-19, the pandemic was not the main reason for the index’s decline.

The disruption brought to the city since the start of the pandemic was very real, according to remarks prepared by Brian Waterman, executive vice president and director of Newmarkwho added that New York City has been able to adapt quickly to new ways of working and how people think about commercial space.

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Commercial brokers listed a delayed return to the office and quality-of-life issues as their top concerns in the first quarter. That’s a factor that could change in the second quarter, as in April the back-to-office movement was just beginning to gain momentum, following a series of several office reopening announcements from major employers in March. By the end of March, office occupancy in the New York metro area had reached 37.1%, up from 22% in January, according to Castle systems.

In terms of a six-month outlook, trading EXI fell from 38.88 in the fourth quarter of 2021 to 21.51 in the first quarter of 2022. Brokers attributed the roughly 17-point drop in expectations to a pessimistic view. funding for the next six years. month.

Residential CCI fell quarter-over-quarter from 50.63 to 31.41, and six-month EXI fell 20% from 42.85 to 22.98, reaching its lowest level ever. low since 2020. Still, broker confidence remained high, although it was moderated by the challenges of the upside. interest rates and inflation.

Solutions are at hand

Brokers who responded to the survey believe that addressing a handful of fundamental issues will go a long way to strengthening the economy and driving the success of the New York real estate market in 2022. For starters, authorities need to find a solution to quality-of-life issues, including crime, sanitation management and public transport safety. Additionally, local government and incentives that support business are a necessity, as is controlling inflation and offsetting financing costs. And finally, there needs to be a more extensive and prolonged return to the office.

The major challenges facing the brokerage community have thankfully moved away from unprecedented public health concerns, said Keith DeCoster, director of data and market policy at the Real Estate Board of New York, in prepared remarks. He added that economic momentum and broker confidence should remain in positive territory, particularly if public policymakers continue to prioritize quality of life issues and allow homeowners and businesses to invest more in New York.

Read REBNY’s full report.