Navigating Manhattan’s luxury real estate market presents unique challenges and opportunities, particularly when it comes to new developments. According to The Agency’s Shane Boyle, success in this competitive market requires foresight, flexibility, and the ability to pivot as needed. Despite various economic challenges and shifting buyer needs, new developments in Manhattan continue to command premium prices and attract a global clientele. Here, Shane shares market insights into the present and future, expert guidance, the best advice he’s received, and more.
What would you say are the most unique challenges and opportunities that come with navigating the luxury real estate market in Manhattan, particularly in the realm of new developments?
Timing and expectations! What is crazy is that these projects are underwritten years in advance with no control over what market the project is going to be delivered into. Economic shifts, changes in buyer preferences, and unforeseen events can significantly impact demand and pricing.
Investors, buyers, and even the community have high expectations for luxury developments. These projects are not just about creating living spaces; they aim to provide unique, high-end experiences and enhance the neighborhood surrounding them. Balancing the vision of the project with practical market realities requires careful planning and flexibility.
Despite these challenges, there are significant opportunities. New developments in Manhattan’s luxury market can command premium prices and attract a global clientele. Cutting-edge designs, top-tier amenities, and prime locations make these projects highly desirable. Success hinges on adaptability and the ability to pivot as needed.
Timing and expectation management present unique challenges in the new development market, but it also opens doors for those who navigate these challenges with foresight and agility.
What is the best professional (or personal) advice that you have ever received? And how do you apply it?
Don’t tie yourself to the outcome.
In real estate, as in life, things move fast and circumstances can change on a dime. Deals that seem promising can fall through unexpectedly, and market conditions can shift overnight. These uncertainties can be frustrating and disheartening if you’re solely focused on the end results.
Instead, my focus is on the process and the daily actions I can take rather than fixating on the final result. This mindset helps me navigate challenges and stay adaptable. It allows me to learn and grow from every experience, leading me to where I need to be, even if the path isn’t what I initially envisioned.
What are some key factors that distinguish successful new development projects in Manhattan from those that may face difficulties or setbacks?
Successful new development projects in Manhattan stand out due to key factors such as prime locations, high-quality design, luxury amenities, and strategic market timing (if possible). By prioritizing these elements, along with effective marketing and sales strategies, financial stability, adaptability to market changes, community engagement, and a focus on sustainability and resilience, developers can enhance the prospects of their projects in the competitive Manhattan real estate market.
Hudson Yards serves as a prime example, demonstrating how its strategic location selection, coupled with a mix of Class A office buildings, luxury residences, and retail spaces, contributes to its success in the competitive Manhattan real estate market.
Are there any areas of Manhattan that you foresee having notable new developments in the next few years?
In the ever-evolving world of Manhattan’s real estate scene, I think two of the oldest neighborhoods in the city have made incredible revitalizations and I am seeing more and more people wanting to live there as their top picks.
Gramercy Park has seen notable new developments go up and there are a couple in the pipeline that I am looking forward to touring. With its super central location, an array of coffee shops, restaurants, and charming streets I think you are going to see more and more people gravitate into Gramercy over the next few years who would not otherwise have lived there.
Another neighborhood that has reaped the rewards of new development is the Upper East Side. Now, the Upper East Side was always a sot after destination from Fifth Ave to Park Ave but only in the last number of years have we started seeing a flurry of new development pop up around Second Avenue fetching incredible numbers which a few years ago many buyers in these prices points would never consider to living that far East into the neighborhood. This is only going to continue to evolve with amazing transportation options, some of the best schools in the city, a great social scene, and the Parks on either side make it a fantastic neighborhood for people to live in.
Special shoutout to my own neighborhood, the Upper West Side! The difficulty with new development here is that the majority of the neighborhood is landmarked. Resulting in a limited number of buildings to choose from and the prospect of new inventory limited to the busy intersection of Broadway which is not in the landmarked zoning.
What projects do you think are really hitting the mark right now for your clients, and why?
The Upper East and West Side’s have had huge success with new luxury condominium developments. The Naftali Group have had incredible success to date and I think the new developments they have coming up on both sides of the Park are going to do incredibly well. We had great success selling 15 West 96th Street with the developers delivering a first-class product matched with unparalleled Central Park views.
Extell’s mega project at 50 West 66th Street selling pre-development with sales blending out around $4,500 a foot continues to blow my mind!
One High Line in West Chelsea got off to a really rocky start then the Wikoff Group swooped in buying out the project, rebranding, and reducing pricing to where the market needed to be. Since then apartments have been flying off the shelves ever since blending out around $3,600 a foot.
There are incredible opportunities all across Manhattan right now to buy into new development and it is incredibly important to work with your broker to analyze each opportunity.
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