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Episode Info: Welcome to the newest New York Real Estate Update from Brooklyn Made. This month’s roundup shows a New York City real estate market that just keeps marching on. It’s rebuilding and reinventing itself every day. Rent regulations are shaking things up, but perhaps not in an ideal way for those who were hoping for rents to go down or stay low. Retail is changing, but new industries and models are popping up and rents remain high. Billions of dollars are still being plowed into the local market and investment properties. While there are still potential corrections and adjustments to be made in the property market, most of the talk of a downturn appears to have subsided. Transactions seeming to show new confidence in this strong market as the status quo for the foreseeable future. Keep listening to get the scoop on all of this, the most notable news this month and what it means for landlords and investors.   In the commercial real estate headlines… Landlords are scrambling to deal with and get ahead of rent control regulations. Many see little common sense in the way regulations are going, and that may not change. Some are trying to sue against new regulations. Others are getting more creative. In response to the new rules Blackstone has stunningly pulled back from plans to continue to renovate the 100 building, 11,000 rental unit complex it bought on the Lower East Side for $5.3B. The giant firm is reportedly looking at other options for the properties in its portfolio, such as converting to condos instead of maintaining rentals. Other landlords are re-evaluating their options due to rules which prevent taking more than one month of security deposit. Such as stopping renting to international students. Others are looking at insurance products to cover the gaps in risk. Then you have new models which are moving to charge for a ‘membership’ to live in shared homes instead of traditional leasing. Models like Haven will cram 20 people into a house, four to a room and charge around $1,000 a month. Others offer pod share arrangements. After several years of incredible growth, other companies who have been modernizing the industry are choosing to cash out. Airbnb is looking for an IPO exit. WeWork is planning a $3.5B IPO in September 2019. A very, very modest sum given recent efforts to secure a $6B line of credit, and previous valuation of $47B.  On the bright side, Amazon is very much interested in taking over the real estate industry. It’s a new partnership with Realogy and its subsidiary companies like Sotheby’s creates a new giant on the landscape and plenty of perks for those using the site. While the market seemed to be struggling to find its footing for a moment, and there is still some adjusting needed to modernize and adapt for today’s consumers we appear to be in a new norm with low-interest rates and very high interest in investing in real estate. Success seems to be all about marketing and pricing it right and tailor...
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