This morning Bisnow held their annual Long Island City/Queens Real Estate Event. No revelations were shared and most of the banter was just such, which this late in the economic cycle is not surprising. So we will use it as a jumping off point in regards to a trend in regards to Long Island City real estate that’s been occurring for a few years but has yet to be publicized.
That trend is the divergence in pricing between rental apartments on Center Boulevard and those off it, and to a lesser extent those in and those not in the Hunters Point section. Despite the large increase in supply in both LIC and NYC in the past few years, rents have risen dramatically on Center Boulevard.
Anecdotally I know several people who have moved off Center Boulevard after lengthy spells living there1. Quantitatively, I know the apartment I rented on Center Boulevard has a monthly listed rent 45% higher than when I left in mid-2014. Yet not only has the economy hummed along in the ensuing five years, but another significant factor came into play.
Namely the discontinuation, aka hard stop, in the building of market rate apartments on Center Boulevard. Since then, LIC as a whole has gone mainstream and attracted outsiders, and insiders have come to realize how wonderful the direct views of Manhattan are and the advantage of having the park in your backyard. Add to that the opening of the new library plus the Pepsi sign and the waterfront is also viewed by non-New Yorker’s as the premium location. Funny how those markets work.
//OH, Jeremy Shell at TF Cornerstone mentioned at the RE event and in the story below, that the “Master Plan” for Hunters Point North is still coming along despite my doubts due to Plaxall’s somewhat feigning interest. Timeline notwithstanding, he indicated that the major change from pre-Amazon plans is that there will be a greatly reduced residential allocation and attributed that to a change in mindset about live/work desirability. True that, but in light of the aforementioned premium, convenient too.
//HOW’S the LIC sales market? Just dandy according to a rep at HERO LIC, a 109-unit condo on Queens Plaza. 30% sold in two months. Ok, the jury’s still out… More interesting is that they’re holding an art competition for a mural/art installation for their lobby. Specs and submission details below, the deadline is October 15.
Shell Yeah: TF Cornerstone’s Jeremy Shell on Life After Amazon – they’re almost as big of a monopoly here in LIC as Amazon is/was
HERO LIC Art Competition – ok all you aspiring Monets and Manets
GDC Hits Reset w/ $76 Million Loan on LIC Townhouses on Murray Park – a few “construction wrinkles”
Teenage Cyclist Killed by Truck on Borden Ave in LIC – Saturday afternoon under the Pulaski Bridge
‘Rent’ Kills It At The Secret Theatre – ironic show title?
OOI Sushi & Lounge Coming to Court Square – turn on the karaoke
A Nightmarish Restaurant Themed Escape Room Hits LIC – escape room & restaurants, whodathunkit?
- the power of compounding increases over years combined w/ inertia leads to a “whoa Nelly” moment when comparison shopping [↩]