NYC Real Estate
Comparison Tables
Side-by-side comparisons of key metrics, structures, and programs in New York City commercial real estate.
Off-Market vs. Listed Sales: Complete Comparison
Understanding the key differences between off-market and publicly listed commercial real estate transactions in NYC.
| Factor | Off-Market Sale | Listed Sale |
|---|---|---|
| Confidentiality | Full - No public exposure | None - Publicly marketed |
| Tenant Disruption | Minimal - Tenants often unaware | High - Tours, signage, publicity |
| Time on Market | 30-90 days typical | 6-18 months average |
| Buyer Pool | Targeted, pre-qualified buyers | Broad, includes unqualified |
| Pricing | Market rate, negotiated | Auction dynamic, may overpay |
| Deal Certainty | Higher - Serious buyers only | Lower - More tire kickers |
| Broker Commission | Standard 1-3% | Standard 1-6% |
| Stigma Risk | None - Private process | Risk if doesn't sell quickly |
| Best For | Owners prioritizing discretion | Maximum exposure desired |
Manhattan Office Cap Rates by Neighborhood (2024-2025)
Current capitalization rates for office buildings across Manhattan submarkets.
| Neighborhood | Class A | Class B | Trend |
|---|---|---|---|
| Plaza District (Park Ave 50s) | 5.0 - 5.5% | 5.5 - 6.5% | Stable |
| Midtown Core | 5.0 - 5.75% | 6.0 - 7.0% | Expanding |
| Hudson Yards | 4.75 - 5.5% | 5.5 - 6.5% | Stable |
| Times Square | 5.5 - 6.5% | 6.5 - 8.0% | Expanding |
| Grand Central | 5.25 - 6.0% | 6.0 - 7.0% | Stable |
| Penn Station | 6.0 - 7.0% | 7.0 - 8.5% | Expanding |
| Financial District | 5.5 - 6.5% | 6.5 - 8.0% | Expanding |
| Chelsea/Flatiron | 5.0 - 6.0% | 6.0 - 7.0% | Stable |
| SoHo/TriBeCa | 5.0 - 5.75% | 5.75 - 7.0% | Stable |
| Midtown South | 5.25 - 6.0% | 6.0 - 7.5% |
Cap rates as of Q4 2024. Individual property cap rates vary based on tenant quality, lease term, building condition, and other factors.
467-m vs. 421-a Tax Abatement Comparison
Comparing the two major NYC residential tax abatement programs for developers and converters.
| Factor | 467-m | 421-a |
|---|---|---|
| Purpose | Office-to-residential conversions | New construction multifamily |
| Eligible Buildings | Commercial buildings built pre-1991 | New ground-up construction |
| Geographic Restrictions | Designated conversion areas (mainly Manhattan) | Citywide with restrictions |
| Abatement Duration | 35 years | 25-35 years (varies) |
| Affordable Housing | 25% of units | 25-30% of units |
| Tax Savings | 70-90% reduction | 70-100% initially, phased |
| Application Process | Through HPD | Through HPD (program sunset) |
| Current Status | Active and accepting | Sunset in 2022, limited availability |
| Typical Use Case | Obsolete office → apartments | Development site → rental building |
| Best For | Office building owners seeking exit | Developers with land |
421-a program has expired for new applications. 467-m remains active for qualifying conversions.
Ground Lease vs. Fee Simple Ownership
Understanding the trade-offs between ground lease and fee simple real estate ownership structures.
| Factor | Ground Lease | Fee Simple |
|---|---|---|
| Land Ownership | Leased from landlord | Owned outright |
| Typical Term | 49-99 years | Perpetual |
| Upfront Capital | Lower (no land purchase) | Higher (land + building) |
| Annual Costs | Ground rent + operating | Operating only |
| Financing | More complex, limited LTV | Standard, higher LTV available |
| Exit Options | Sell leasehold, negotiate buyout | Sell freely |
| Asset Appreciation | Building only | Land + Building |
| End of Term | Building reverts to landlord | N/A - own forever |
| Tax Treatment | Rent is deductible expense | Depreciation on improvements |
| Best For | Capital-efficient investors | Long-term hold, generational |
Need Property-Specific Analysis?
These are general market comparisons. For analysis specific to your property or investment criteria, contact our team for a confidential consultation.