Dreaming of the Next Great Manhattan Neighborhood
Many brokers dream of discovering the “Next Great Manhattan Neighborhood” that will strike their firm rich and put them on a path towards an early retirement and an indefinite vacation. However, the reality is that in a place as historically overdeveloped as New York City, the sudden emergence of these “hotspots” are often no more than a repacking of existing neighborhoods slapped with a nifty, new name. For sub-neighborhoods such as “NoMad (North of Madison Park)” in the Flatiron District or the “Silicon Alley” that extends from SoHo to TriBeCa, that rebranding effort came naturally and effortlessly. For others, it would require a critical eye and an optimistic disposition.
In respect to absolute land mass, the island of Manhattan is more or less the same size it has always been (and would potentially ever be). Given the recent volume of interests and new constructions on the Far West Side or in Hudson Yard, developers and investors have had to be more innovative than ever. Rather than reinventing the wheel, many developers are now choosing to revitalize existing neighborhoods with bargain rentals and attractive new constructions.
An exemplary model of this trend would be Midtown East. Apple recently opened their largest store yet inside the central terminal at Grand Central Station. The deal for the 23,000 square foot of retail space closed at a mere $180 per square foot, or $20 shy of the $200 that other top shops have gone for in the past. Earlier this month, the United Nations also unraveled their plans with Zeckendorf Development to build a 44-story, 240,000 square foot condominium tower for diplomats. The $160 million construction project will boasts 87 large apartments with an average of 2,500 square foot and 12- to 16-foot ceilings.
Reviving many of the long-standing and reputable neighborhoods that already easily stand on their own have proven to be a rewarding endeavor for many commercial and residential developers. While uncovering the Next Great Manhattan Neighborhood between X and Y Street and Z Avenue may not be all that realistic, sometimes you just have to look at what is right in front of you to see green.
