Investors Seize Opportunities in Booming Long Island Real Estate Market

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Marcus & Millichap’s 2021 sales volume in Long Island has grown by 780% in the past 12 months. This type of increase is particularly noticeable during what remains difficult for many. So who buys and sells in Long Island and how has Marcus & Millichap been able to increase their market share?

Michael Tuccillo, native of Long Island and investment sales specialist in Marcus & Millichap’s Manhattan office, spoke to The Real Deal with his colleague Susan Bands, regional manager of Marcus & Millichap’s Manhattan, Westchester and New Haven, regarding the robustness of the Long Island real estate market and the factors most likely to influence investment opportunities in 2022.

Perfect opportunity for the “never sell” crowd

Generally, Long Island has demonstrated a relatively low speed of sale and a preponderance of generational owners who ‘never sell,’ Tuccillo said. However, an influx of Metro-NY residents during the pandemic boosted Long’s economy. Island, leading to increased demand and selling prices throughout 2021. This, combined with the general challenges and management headaches caused by the pandemic, has prompted some generational owners to seize the opportunity to sell .

In many cases, the specialization of the local market and Marcus & Millichap’s national platform have helped attract new out-of-state buyers, who pay higher prices. In these cases, the team’s local expertise was essential in helping buyers navigate files and administrative processes. “Long Island is relatively small but exceptionally diverse in terms of demographics and trends; it takes an expert who really understands the nuances of Nassau and Suffolk counties and the towns and villages there, ”said Bands, also from the island.

Conversely, many Long Island owners have taken the opportunity to move their capital out of state. “We’re seeing a huge migration from the capital of New York City to the southeast and Texas,” Bands said, “it’s going both ways.”

Where Marcus & Millichap sees new growth on the horizon

According to Tuccillo, “2022 is set to be another solid year for motivated sellers and buyers looking to enter the market for multi-family, industrial, commercial, office and self-storage opportunities.

Knowing about changing demographics and emerging businesses on Long Island, the team can identify opportunities and provide clients with information to help them make informed decisions before buying or selling for all types of assets.

“With self-storage, in particular, the land in and around Metro-NY is too expensive. Developers and builders buy land on Long Island to make storage units and resell it cheaply. Industrial investors are noticing that properties on Long Island are price competitive and that the central island offers a timely opportunity, ”Tuccillo said. “In central Long Island, investors and buyers can plan for new opportunities that take advantage of the extensive transportation networks near major highways and rail lines. “

Apart from business developments, multi-family investments are also on the rise due to the boom in business expansion on Long Island. “Many long-time owners have sold their properties and left the area, which has opened up opportunities to develop new apartment complexes or renovate existing ones,” says Tuccillo. “It helps attract tenants with families looking for neighborhoods where they can live, work and play. “

  • Many developers have adopted the live / work / play mantra, developing diverse communities across Long Island. Suffolk County has seen an increase in multi-family activity as people seek cheaper property taxes. In turn, this shortened the ride to 30-40 minutes as the mall moved away from one that was traditionally focused on Nassau County.
  • Those wishing to relocate will be able to find properties with excellent amenities close to any downtown Long Island – local jobs, hospitals, schools, colleges, and businesses help create a strong demand for housing and retail. Where there is demand, commercial real estate investors compete for success. In Nassau County, despite a higher tax rate than Suffolk County, real estate competition has pushed investors to pay a higher price for commercial real estate.

With such an increase and a noticeable shift in residents and tenants to the east in the Long Island market, Marcus & Millichap continues to see growth in activity for all types of assets in key locations and neighborhoods. growing. Investors can confidently work with Marcus & Millichap to create a competitive advantage that translates into major new opportunities.

“Marcus & Millichap is a national firm with a collaborative culture. Our market presence, combined with our expertise in completing transactions on Long Island, allows us to maximize value for owners and investors and achieve unprecedented prices. This allows us to take advantage of a large pool of out-of-state buyers willing to pay a premium for these rare Long Island opportunities, ”Bands said.

Do you want to invest in the Long Island market? Contact Marcus & Millichap today.


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