The only thing in LIC that has nothing to do w/ Real Estate ...or schools ...or pizza

The only thing in LIC that has nothing to do w/ real estate …or schools …or pizza

Real estate recaptures the headlines this week.  Notably the LIC Partnership held it’s 11th Annual Real Estate Breakfast this morning.  I’ve noted before how it’s always a sold out crowd, and how it’s become more about networking1 than knowledge, as the rest of the city/planet has caught up with the Long Island City phenomenon since I first started reporting on this event four breakfasts ago.  Thus it’s largely a victim of its own success.

If there was one theme that seemed to stand out, it was how interest in LIC from an investment-perspective, has shifted from residential to commercial.  Between all the supply coming on and the increase in prices for properties and land that’s zoned for residential, that shouldn’t come as too much of a surprise.

One of the panelists, Steve Klein of Brickman Real Estate, gave a good overview of the how and why of commercial RE in LIC today.  Two years ago Brickman purchased a four-story 320,000 square foot factory-like building that’s two blocks from the 33rd St. 7-train stop.  Since then, as the NYC office environment has evolved, they’ve completely shifted their investment mindset from making only small upgrades to a full renovation.  Think Ace Hotelesque, with an enlarged lobby outfitted to be more like a lounge for all the tenants to use, four food “stations,” a bike room, and a small gym with a showers equipped locker room.  As Steve pointed out, the latter are needed for all those tenants using bikes for their commute.

Here’s the math that’s motivating developers to pay up for these commercial buildings, and tenants to move there despite the locale.  If a business occupying 50,000 sq ft in the garment center is currently paying $60 a square foot, they can get a similar office in one of these newly retrofitted buildings for $35 a square foot, thus saving $1.25 million a year.  In addition, Steve added, they are getting a much better environment to work in which will include 16′ ceilings and the aforementioned amenities – something similar buildings in Manhattan are not adding.

Confirming this trend, Paul Neuman who’s Neuman’s Kitchen just started operating out of LIC after two decades on the Lower East Side, said he’s getting 2 1/2 times the space he had in his old location for the exact same price.  After a lengthy search city wide, Paul decided on LIC for his corporate catering business because its proximity to the subway was necessary for his employees, many of whom work off hours, as well as it’s multiple easy-to-access entry points to Manhattan for his trucks.

On that note, while knowledge is a smart thing to have in the real estate business, so is a good spread – which Neuman’s brought with them this year to enhance the event.

A Q& A on LIC Real Estate with JRT Realtya basic summary on the current commercial state

A Construction Update on 41-21 28th Streetnot much to report, but will be a pretty cool building when it’s complete

TF Cornerstone’s Jeremy Shell Still Loves Rentalsif you want to understand the definition of long-term thinking in the real estate business, read this

Frustrated 7-Train Riders Unload on Officialsat the 7-train town hall meeting last night.  Despite all the kvetching, some interesting thinsg came out of it: track replacement and Steinway Tube work will be finished by year end; two additional trains to be added to the evening commute in the fall; and the CBTC project, which will speed up service and bring countdown clocks to the 7-line, should be completed in 2017

Acid Attack Was Heinous Cover-Upa woman who had acid thrown on her last summer in LIC, was the director of a charity that was being embezzled by the alleged perpetrators according to the DA

Nomad Cycle Arrives on 37th and 37th – a move from their original home of two years in out of the way Austell Place

  1. this years attendees included Melinda Katz and Carolyn Maloney – who like most politicians have a nose for constituents and money developers []
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  1. Anonymous says:

    Wait… my car and I love pizza!

  2. […] Developer Taps Into Queens Migration – new 9-story office building coming to Queens Blvd, further indication of the focus switching from residential to commercial in LIC […]

  3. […] – 6-story building located at 43-01 22nd Street will be revamped by new owners, continuing w/ the recent theme of upgrading of commercial spaces in LIC.  As for the […]

  4. […] also be very happy to be acknowledged by said newspaper as being ahead of the curve on the changes and growth in commercial real estate in LIC.  That might be too much to ask, even if they framed an almost identical lead photo to encapsulate […]

  5. […] them were struck when the commercial rental pricing in the area was 25% lower.  Though we’ve marveled at the growth in the commercial sector recently, all we can say about this transaction is […]

  6. […] attendance, the presentation and panel were a little stale.  Now in fairness, I’m not sure there’s much meat left on the bone in terms of the LIC transformation.  At this point we can tangibly see a lot of the growth, and that which is on the drawing boards […]

  7. […] I share that anecdote because through no fault of the LIC Partnership, both real estate and confabs about it in Long Island City have increasingly focused on the commercial side as opposed to residential, a trend I noted two years ago. […]

  8. […] it in Long Island City have increasingly focused on the commercial side as opposed to residential, a trend I noted two years ago. (function($){ $(document).ready(function(){ }); })(jQuery); (function ($) { var bsaProContainer […]

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