Though previously considered relatively low-end and generally unpopular, more than 70 walk-ups were sold in Manhattan in this year’s second quarter alone. Three years ago, that figure barely passed 30. In addition, these apartment sales made almost $640 million in the first half of 2012, while 2009 saw only $210 revenue from walk-ups.

The Benchmark Real Estate Group is an example of a firm who recently took interest in the strategy, purchasing a 22-unit walk-up building at Sullivan St. in Soho. The building is now selling for $12.5 million though it was acquired for a mere $6 million.

“When we bought it, the rent rolls were about $300,000, but after renovating the apartments and pushing up rents, it is now generating $1 million,” explained a company co-founder, Jordan D. Vogel.

 

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According to the New York Real Estate Journal, “interest rates are as low as 3% and the Fed has indicated that rates will remain at this level for the nect few years. Rates are lowered to boost the economy and, as far as local real estate goes, it’s working because the New York City real estate market is booming! The low rates, as well as the lack of other viable investments, are a major driving force behind the upsurge in activity.”

Local businesses and the U.S.’s overall economy are benefitting from the upswing in New York’s commercial real estate industry as agencies and law, environmental and engineering firms flourish from the business. NY neighborhoods are also seeing the advantages as buildings are renovated and areas are revitalized.

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Morris Companies, a developer based in Rutherford, recently broke ground in a $50 million warehouse in Newark’s Ironbound district. What makes the step particularly bold is the fact that a tenant has yet to commit to the spot.

The facility, which will cover 337,000 square feet, is located right alongside Port Newark and New York City, which adds loads to its appeal, according to the company. The port, which belongs to both NY and NJ, is known as one of the most important to the area’s industry. It supports almost 280,000 jobs already, while numerous developers expect that number to rise as the Panama Canal expansion triggers additional growth.

“This port is going to be hot,” NAIOP’s Michael G. McGuinness said. “It’s already hot, but it’s going to get hotter. Anybody that’s in the industrial sector is probably in a good mood because they’re seeing the light at the end of the tunnel.”

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