Newark, New Jersey has long been a city in decline. In the past, the struggling metropolis (the largest in the state) has attempted singular projects in order to grasp at rejuvenation. These have failed largely due, according to Wasseem Boraie, due to lack of options provided in the limited projects. However a new project, or rather a series of projects, is in the works with the added benefit of the aforementioned choices for consumers.
In addition to variety for consumers, projects such as this offer the chance for outside investments, a further boon for the city. It’s a strategy that has proven itself in similar situations in the state, and Boraie is hoping for repeated success in Newark. The projects will take time, and will be expensive, but funding from several sources will offset concern and the profits from the construction will hopefully ease minds.
Boraie is the executive vice president of Boraie Development LLP, a construction firm operating primarily in New Jersey for thirty years. They specialize in industrial buildings and warehouse space. The company also deals in real estate development and property management. Boraie hopes that the series of high profile projects will give the city a much needed boost, and bring in consumers from outside areas. This support could provide the city with much needed cash as well as visibility.
According to Boraie, the value of parking in Newark is one of the largest hurdles currently when it comes to growing the area, as the parking is in fact more valuable than the buildings that currently exist. The parking and the planning of the city has isolated many buildings, and according to Boraie these are primary factors in the difficulty of growing the city. The assets are overvalued for the location, and this is preventing people from moving and working in the city.
The project includes multiple residential structures, as well as shopping space and public rejuvenation. Returns are positive, with 70 percent of retail space already leased. There is hope, voiced by Jose Cruz of brokerage firm HFF, that the new spaces will help build momentum in the city, and will be boosted with investments.
In the third quarter of 2015, the economy of New York City slowed slightly like the other parts of the nation, although the rate of employment was up by over 60,000 jobs one year ago. The growth of employment sector was critical in driving the income up. The tourism sector in NYC remained the key driver of retail operation, where more than 55 million tourists visited the area in 2014. In May 2015, the hotel industry reported over 4 percent increase in accommodation for tourists. The combination of increase in employment, excellent performance record in the tourist sector as well as increase in incomes of residents played important role of boosting property sales in NYC.
In 2014, real estate industry in New York City apartments for salerecorded a 5.3 percent increased compared to previous year, and the expert in this industry are expecting the projection to remain healthy throughout 2015. In Manhattan for instance, the asking retail rents in eight out of eleven submarkets was up in the last quarter of 2015 as compared to similar period in 2014, according a research conducted by Cushman & Wakefield.
According to the report released on The Real Deal, it was announced recently that some tenants leasing large food halls, are positioning themselves for future large-scale projects like the 40,000 sq ft food market that will be constructed at the South Street Seaport and another food hall covering the same area being developed at Hudson Yard. Throughout Manhattan, the demand has remained constant or reduced slightly, and the velocity of leasing has slowed also and retailers have paused, since the asking rents are rising sharply.
About TOWN Residential
TOWN Residential was established in 2010 and has emerged as the leading real estate firm in New York City. The company focuses on luxury residential like sale, marketing and leasing as well as property development. After venturing in this industry, TOWN Residential established new performance standards that help the firm to become an excellent performer within the field.
The company has a wide network of specialists in the industry like contractors, architects, interior designers among others, whom it relies on when developing or buying properties. TOWN Residential has a marketing division responsible for creating awareness so as to increase demand of services offered by the company. This division is also mandated to lease properties for the highest value and also least time possible.