Investor Appetite Increases for Retail Condos

Small and mid-size retail condos in up-and-coming markets like southern Soho, along Canal Street, and areas near Times Square in New York City are increasing in demand. Investors seeking to acquire multi-family investments are now looking to purchase retail condos. High prices and easy lending for multi-family buildings have driven cap rates down so much, it just doesn’t make sense for many investors in limited inventory markets like New York City. The $2-$18 million price range is attracting the private investors seeking alternatives to the low cap multi-family product. Another reason investors are attracted to retail condos is that stores tend to be lower-maintenance tenants than residences.

 Source: Harbor Stone Advisors Commercial Group