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Category ArchiveStarwood Capital

So Long, NYC: Real Estate Execs Flee Big Apple for These Five Cities

Leave it to Jonathan Kalikow, the president of Gamma Real Estate, to tell it like it is.

“In New York City, it’s ridiculously expensive,” the veteran investor said in an interview last month. Pick your poison: property values, legal expenses and most of all taxes—all can conspire to make the cost of real estate deals in the Big Apple as inflated as the price of a pack of cigarettes at a Wall Street newsstand.

Not so long ago, that tab was just the cost of doing business. But with flagging infrastructure investment dinging New York’s livability, ever-improving communications technology rendering geography less relevant and hoards of under-30s flocking to regions with more affordable housing rents, New York might want to reconsider resting on its laurels.

The squeeze tightened considerably last month when Donald Trump signed the Republican tax overhaul into law. The new code, finalized just before Christmas, caps deductions for state and local taxes at $10,000—previously, such deductions were unlimited. It’s a move that stands to hit New Yorkers and Californians especially hard—and most of all those with significant real estate holdings. Residents in the two states alone receive about a third of the deductions the Internal Revenue Service hands out for state and local taxes. In Westchester County, N.Y., more than 73 percent of residents pay more than $10,000 in property taxes—to say nothing of New York State’s top-line income tax bracket of 8.82 percent on income over $1 million.

At a time when New York’s streets and development market have never been more crowded and expensive, some savvy market players are striking out across the country in search of greener pastures—and better deals. Here are five cities that real estate pros told Commercial Observer they are eyeing.

Source: commercial

Children’s Clothing Company Moves to Midtown From Garment District

Source: commercial

Single Family Goes Big: Institutional Interest in Standalone Homes is on the Rise

Source: commercial