The national real estate firm Grubb & Ellis Co. on Monday released its property investment forecast for 2011 and has put Long Island in the top 10 in a couple of major market segments — multi-unit housing and retail property.
In the multi-unit housing sector:
Long Island tied San Francisco for the No. 2 spot for multi-unit residential investment. New York City was ranked No. 1. Grubb & Ellis said foreclosures are adding a "shadow supply" of rentals to the market. But upheaval in the homebuying and mortgage process is "causing the number of renter households to outpace" the shadow supply of foreclosure rentals, the company said.
Retail property investment sector:
In the top 10 markets for retail property investors, Long Island ranks No. 8. Higher-profile retail locations are now available at lower rates and will fuel new lease signings, the forecast says. "Luxury retailers in particular are on their way to recovery as the financial pressure on the demographic they serve has eased," Grubb & Ellis found, adding, "though the relatively high level of unemployment at the working class level will result in a slower recovery for big-box discount retailers and other merchants."
The 2011 forecast from Grubb & Ellis did not provide nationwide rankings for office and industrial property investment.
But it had good things to say about Long Island’s status in those categories.
“With an unemployment rate less than 7 percent, and employment growth expected in the education and health services sector, the office market will continue to improve throughout 2011,” the report said.
“Despite the overall vacancy rate surpassing 5 percent in 2010, Long Island’s industrial market remains one of the healthiest in the nation,” the report said. However, “lack of new development, renewed demand for distribution space and potential growth in the biotechnology and energy sectors will help the market maintain low vacancy levels in 2011.”
Read more of Inside Long Island Business