Out with the new, in with the newer.
We've seen the influx of residential new developments rising around Manhattan for a few years, but now the commercial industry is taking the lead.
The commercial real estate boom kicked off during the second quarter of this year, with vacancy rates decreasing 4.5 percent from first quarter to 10.6 percent, marking the lowest rates in two years.
However, the increasing demand for commercial space does not come as a surprise -- as the state of the national and local economy rises, so does business growth and expansion potential. In addition to the Fortune 500 company headquarters that have historically called New York home, such as J.P. Morgan and Verizon, New York is the "it" city for newly thriving businesses and tech startups given their infinite expansion potential.
Not only is the number of companies relocating to or starting out in New York at a highpoint, but the square footage of office space needed for each of the companies has grown as well. Economic, business and real estate growth are all in an interconnected circle.
Developers have caught onto the high demand and as a result are eyeing commercial developments rather than residential -- an unforeseen shift. Until now, residential new development and conversion plans have been popping up almost weekly. As a result, the commercial new development territory is wide open and ready for business.