One positive thing the P.L.C.B.B. (Pre-Lehman Collapse Building Boom) gave us was a superior stock of well-conceived shiny new condos. Is it any wonder why these new condos are now selling for a premium, even now? A lengthy New York Times article this past Sunday explored this phenomenon, and I’d like to elaborate on my comments in the story – that product in new developments fares best even when the markets are in decline.
If you think about it, the way in which we live our lives today has changed about as dramatically as the way we communicate. (Remember the beeper and pay phone?) Buildings today are designed differently – because we live differently. To most, the layout of the un-renovated classic six on Park Avenue is not as desirable as the new loft apartment on lower Fifth Avenue. Does anyone (with a budget) in Manhattan still use a formal dining room? Certainly not as much as a playroom, home office, guest room or open kitchen.
And now that these newer buildings have amenities to match our lifestyles, their appeal is that much greater. The interesting observation to me of real estate relative to history is how it reflects our current culture. And it is changing more now than ever before. Our pipeline of new developments we will be bringing to the market in the next wave of housing reflects this. Not only as a representation of our lifestyle, but an evolution of our culture.
Shaun Osher is the founder and CEO of CORE.