7 big things that could happen to NYC real estate in 2017

Hope springs eternal in frigid January, as developers and brokers get back on the job after long holidays away. Here are some of our own hopes for the new year at locations the real estate industry will also be watching closely.

​East Midtown Rezoning: The least sexy-sounding, but most important wish-list item for 2017 is the long-awaited rezoning of the vast “Grand Central District” (the blocks between Third and Fifth avenues and from East 40th to 57th streets). Several times delayed, it appears at last ready to start the public-review process early in the new year. Time is of the essence as more companies abandon the once-premier district where old zoning makes developing large new buildings nearly impossible.

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• Larry’s Big Lease: Silverstein Properties is itching to sign Spotify, now at 620 Sixth Ave., to over 500,000 square feet at 4 World Trade Center, a negotiation first reported by my colleague Lois Weiss. A deal would fill the 2.3 million square-foot tower — and claim another marquee tenant for downtown.
• Durst’s Decision: The Durst Organization is weighing its options for the linchpin southwest corner of Park Avenue and East 125th Street, which it bought from Bruce Eichner a few months ago for $91 million. Durst owns several other large development sites in the city, but we’re keeping our closest eye on this one, where a new residential or mixed-use project would fill a gaping hole in East Harlem’s gradually improving streetscape.
• The Trump Effect: Residential developers are praying, and we’re certainly hoping, that Donald Trump’s rise to the presidency will encourage, rather than scare off, continued foreign investment in high-end condo apartments. A continued open spigot is good news for Harry Macklowe, Gary Barnett’s Extell and Ken Horn’s Alchemy (which is converting upper floors of the Woolworth Building.) But a retreat by foreign buyers could spell disaster for their projects — and for dozens of others around town where only slightly less expensive new product is coming on line.
• South Street Seaport: It’s been only good news so far for Howard Hughes Co.’s restoration and expansion of the dining and entertainment complex. The luxurious iPic cinemas recently opened in the Fulton Market Building, and leases have been signed with restaurateurs Jean-Georges Vongerichten and David Chang at Pier 17. But work on Pier 17 still has a way to go despite obvious visible progress. There are engineering and landmark issues yet to be resolved and the opening date’s unclear. Let’s hope they finish the job soon.
• Battery Maritime Blues: The city is scrambling to revive the long-stalled hotel project atop the landmarked Governors Island Ferry Terminal. The original developer backed out, and prospective rescuer Steven Witkoff no longer seems to be in the picture. Although it’s not the biggest project, its almost-but-not-quite-finished status at a high-profile location remains a blemish on otherwise rejuvenated downtown.
• Retail Prayers: Proliferating, huge and yawning vacancies increasingly blight neighborhoods from the Upper East and West Sides to the Battery. Maybe landlords will come to their senses and realize that token cuts to asking rents won’t help as stores continue to close; shoppers switch to buying online; and new and “repositioned” buildings only bring even more pricey space online.

Source: NY Post