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Manhattan Inventory Crunch Sparks Bidding Wars

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Sold Home For Sale Sign in Front of New House

A seller’s market is emerging in several Manhattan neighborhoods, with inventory crunches leading to the return of bidding wars, according to a new report by real estate data firm UrbanDigs. 

The report looked at the ratio of demand to supply. It found, for example, that Morningside Heights, the West Village and Little Italy each have over 1.5 times more units in contract than available. 

The strong demand means buyers must compete to win deals. Agents are seeing this firsthand.

This spring, Mihal Gartenberg, an agent at Warburg Realty, noticed a shift in the market and increased buyer competition after she began working with a buyer looking on the Upper East Side, where there are 1.03 times more units in contract than available. 

“When we finally found the apartment she wanted, a condop in a building with condo rules, she was one of three buyers to place a bid,” Gartenberg said. “Prior to that, I observed that there were so-so apartments that had multiple showings and full-ask offers after being on the market for only one day.”

Gartenberg believes they were lucky to not only land the apartment but also negotiate the price down a bit. “Buyer negotiability was dropping while we were shopping. It was a very interesting experience to observe firsthand. I truly believe that had she waited one more weekend, we either would have lost the apartment or would have had to go in at ask, or above, to get it,” she explained.

Broker Sheila Trichter of Warburg Realty had a similar but unsuccessful experience with a client in the West Village looking for a one- or two-bedroom condo in the $1.5 million to $2.5 million range. 

“The market for that price range in West Village condos was extremely tight and while nothing there pleased my buyer, every apartment that we saw went quickly and many had experienced competitive bidding,” Trichter said. “This is often the case here because, except for the new and new-ish developments that have large and super expensive apartments, there are just not that many condo buildings in the West Village.”

While the market in much of the country has been busy throughout the year, the spring saw a tightening in Manhattan. 

“I had a classic-six co-op listing on Central Park West that went on the market in December,” said agent Robert Elson of Warburg Realty. “It got a big response early on but since it needs work it did not get any traction. Three offers significantly below ask were rejected by the seller, but then in the spring we dropped the price by 16%, and offers came in almost immediately. The contract was signed this week. Both and buyer and seller are extremely pleased.”


Warburg Realty is an exclusive member of Forbes Global Properties, a consumer marketplace and membership network of elite brokerages selling the world’s most luxurious homes.

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Real Estate

11 Predictions For Innovation In Commercial Real Estate

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Photos of featured members.

The impact of Covid-19 has greatly been felt across the commercial real estate industry. Many businesses had to shut down, while others moved to working remotely. Few new businesses opened due to the uncertainty the pandemic brought. During this time, there was little need for buying or renting commercial buildings. However, as agents know, the impact of crises on real estate does not last forever.

As the world begins to return to normal, workers are going back to the office and businesses are beginning to open. The demand for commercial real estate is growing, and with this growth come new possibilities for innovation. Below, 11 members of Forbes Real Estate Council predict how the commercial real estate landscape will react to the effects of the global pandemic.

1. Increasing Demand For Multifunctional Spaces

The pandemic accelerated trends already in play such as working from home. As companies allow employees to continue to work virtually in some capacity, developers will need to ensure interior spaces include aesthetic, yet highly functional pockets conducive for work. Advanced digital capabilities, privacy and adaptability for recreational use in non-working hours will define the new home office. – Mary Cook, Mary Cook

2. Heightening Need For Sustainable Buildings

The construction and operation of buildings account for nearly 40% of global carbon dioxide emissions, so innovative real estate leaders will invest in energy-saving designs and healthier materials. With governments at every level implementing stricter sustainability regulations, projects that don’t prioritize this will lose value as they become obsolete, uninsurable and unable to be occupied. – Andy Cohen, gensler.com


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3. Evolving Definitions For Real Estate

There will be a convergence of commercial and residential real estate (i.e., a modern take on timeshares), which will force us to get more specific about what commercial means. As we merge living, playing and working—along with how we own and invest—the marketplace will require iterative and inventive definitions that account for evolving ways of operating the future of living and the economic progress to which it adheres. – Alex Allison, D. Alexander

4. Prioritizing Proximity To Work And Home

More live, work and play communities are being developed. People are valuing their quality of life and time more. Proximity to work and play, especially in a walkable community, is more appealing as it minimizes travel time and expenses. – Catherine Kuo, Elite Homes | Christie’s International Real Estate

5. Converting Unused Office Spaces

With the significant decrease in demand for office space due to work-from-home and the digital economy in general coupled with the significant shortage in housing, I predict underutilized office space will be converted into condos. Kill two birds with one stone. – Nick Ron, House Buyers of America

6. Rising Real Estate Automation

AI will continue to reduce operating expenses at both the property level and the corporate level. The role of the commercial broker, appraiser and others will be reduced significantly over time. Almost everything will become automated like it did with banking, lending and other industries. – Ken McElroy, MC Companies

7. Increasing Need For Technology Solutions

Real estate is long overdue for innovation through legal tech. With the volume of business transactions in real estate, technology shall be built to centralize and automate case management, especially when it comes to foreclosures. AI can help predict foreclosure timelines based on previous cases, thus leading to more efficiency. – Saurabh Shah, InstaLend

8. Redesigning Housing Developments

Housing design (both single-family rentals and multifamily) as a result of Covid-19 and work-from-home optionality will be the greatest point of innovation in the real estate industry. Developers and owners who will use even a one-day-a-week work-from-home schedule will begin to think differently about the layout of their house. Time spent in the home will shift from the bedroom and dining rooms to an at-home office. – Paul Monsen, GSP

9. Combining Data With Relational Information

Access to real estate data, information and knowledge will continue to improve because of technology. The wisdom of combining the data, information and knowledge with the appropriate experience and relationships will always be controlled by real estate professionals. Real estate professionals should always focus on relationships above all. – Richard Lackey, City Commercial Real Estate, Inc.

10. Growing Number Of Commercial Real Estate Portals

We will start to see more portals that carry properties in much the same way as the MLS does for the residential sector. This is important for national clients and clients expanding across markets. There will be more cooperation in this space as we see the need to service both owners and prospects. – Nancy Kowalik, Nancy Kowalik Real Estate Group

11. Shifting Focus To Consumer-Centric Technology

The rise of consumer-centric technology will be a key trend for innovation as real estate owners look to provide better experiences in their spaces. Whether in multifamily or office, the end-user is a consumer with a set of expectations for the places they spend money and time. Innovations that help meet and exceed those technologies will help real estate owners stay ahead of the pack as CRE becomes more consumer-driven. – Benjamin Pleat, Cobu

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How To Launch An Entrepreneurial And Investing Career When You’re Young

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Saving for properties

Canadian Entrepreneur with Global Invest, on a mission to help people invest in real estate to create generational wealth.

The best time to start entrepreneurship and investment is when you are still young because the longer your financial investments will be operating, the more substantially your savings account will grow. I receive many queries from young people who want to set up an entrepreneurial project and invest in real estate. I strongly encourage them to do so. Despite your young age, you can learn how to save and invest your money to yield additional income. Here’s how.

Save Money

You might be wondering right now how to save money without a salary or with minimal income. It is possible! Here are two smart ways to build up a savings account and generate returns. 

1. Tap into your own pocket money: If you are still a student or under the care of your parents, you may receive a monthly allowance from your parents or student financial aid. If this is the case, I advise you to start saving based on your available cash, at least $100 per month, in an individual savings account. The IRA is suitable for you at this point as it is tax-free.

2. Look for a student job: To save sufficiently for your investment project, search for a part-time job that will provide additional income you can direct toward savings. You will want to build up considerable savings as a first step in order to achieve a return on your future investment.

Build Your Business Online

In order to start a business and invest at a young age, you must recognize that the internet has created a global village where everything can happen with just a click. Indeed, the web is full of opportunities that should not be neglected. 

1. Build your own website: As a student or young professional, building up a substantial savings account can be quite difficult. One strategy I recommend is creating a website where you can offer your services. The internet is a massive customer niche where possibilities abound, from e-commerce to offering consulting services to writing sponsored blog content and more.

2. Brand yourself on social networks: Social networks have significantly reshaped the business world. It is difficult to succeed without creating a recognizable brand across social networks, especially if you want to start a business and investing career at a young age. In this respect, I advise creating Facebook accounts, Twitter accounts and even a YouTube channel. These accounts can significantly help you boost your eventual rate of return.

Invest In Real Estate

Once you have saved enough money through your business and savings plans, make your money work for you. Investing in rental property is one of the best ways to diversify your monthly income.

1. Invest with REITs: A real estate investment trust, or REIT, is a great stepping stone to entrepreneurship and investment for young people. Also sometimes referred to as real estate paper, this type of investment offers excellent possibilities in terms of rental management, especially if you are a student and school takes up most of your time. The REIT you invest with will handle all the leasing, renovation work, rent deductions, etc., and interest rates generally vary between 5% and 9% depending on the type of REIT chosen. 

2. Explore real estate crowdfunding: Crowdfunding is another interesting approach for young people who lack the required funds to obtain a mortgage and represents a supportive financing method for real estate projects. It plays the same role as a banking institution as it provides money to start your real estate project. The annual rate of return on this type of funding ranges from 8% to 10% depending on the size of the investment.

3. Purchase a parking space: It is wise to start out small and work your way up. For example, you can start by buying a simple property such as a parking space, something that may be much more attainable for young entrepreneurs. By starting on a small scale and planning for the short term, you can minimize your risk.

Improve Your Skills Through Training 

In order to achieve long-term investing success, you need to be an expert in your field. For example, if you intend to invest in rental property, I recommend taking a property investment course in order to build a good investor profile. You need to know how to invest in order to make the most profitable investments. Constant training provides a number of advantages, including:

• Staying competitive.

• Increasing your profitability.

• Acquiring new knowledge.

• Keeping up to date on industry trends.

• Increasing your credibility and building customer loyalty.

As I like to say: In rental investing, what you don’t know can cost you a lot in terms of money, opportunities and strategy. So, it’s important to keep training. Indeed, investing in real estate at a young age and improving your skills over time is an excellent strategy for those who aim to become rich faster, take an early retirement and live on generous retirement savings generated by your real estate investments. 

The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.


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Real Estate

Ten Best Outdoor Design Trends Of 2021

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A picnic with rattan chairs, pillows, a table and other accessories in a woody outdoor space.

Summer is finally here. If you’re excited to see friends and family, you aren’t the only one. For many of us, this season is sure to be filled with pool parties, patio picnics, and backyard barbecues. So, there has never been a better time than now to refresh your outdoor space. Whether your backyard needs a major overhaul or just some sprucing up, here are the top outdoor design trends of 2021. From the colors you must accessorize with to the design elements that stayed popular from last year, these are all great ways to upgrade your outdoor space.

Painted Details

Bid farewell to the white picket fence and say hello to pink, aqua or any vibrant hue you choose because painted details outdoors is one of the newest trends of 2021 according to Danielle Blundell, Home Director of Apartment Therapy.

This includes everything from fences painted unique colors to custom murals and even painted pool decks. This is also a great DIY project to try. “Exterior paints can be different colors. And you don’t have to worry about the wear and tear. You might have to refresh it seasonally the same way do with decking or your driveway,” she tells me.

This trend may very well be inspired by the Instagram walls that we so popular prior to the pandemic. 

Rattan

We’ve been seeing rattan for several years right now and there’s no chance this trend is going away any time soon. There’s a good reason for this. Rattan is an eco-friendly, high quality material with a timeless aesthetic, according to Janelle Bowers, founder and CEO of Resol Beach. “Rattan is made from natural, sustainable materials that can weather the elements and will last over time. It has been a major trend in outdoor design because it allows us to spend more time outside while enjoying these products, which in turn creates value through memories and experiences.” 

The only caveat to keep in mind is that it can take a little bit of work to maintain. “The best way to care for rattan is treating it like any other piece of furniture. Proper care will ensure the longevity of the natural materials. To maintain the beauty of rattan, clean regularly with a damp, clean cloth and avoid harsh chemicals or oil-based products. When not in use, use a cover to avoid direct sunlight and store in a cool, dark place,” say Bowers.

Broken Plan Layouts

If the pandemic taught us anything, it’s that the open floorplan home isn’t quite as appealing when everyone is home all day every day. The same rules apply to outdoor spaces as well, interior designer and HomeGoods Style Expert, David Quarles tells me. “This summer, creating designated spaces outdoors is just as important as it is indoors, as broken-plan layouts are rising in popularity.”

Fortunately, building out a separate layout for patios and backyards can be easy. “Just use your home’s interior layout as your inspiration. Designing outdoor kitchens, lounge areas and dining ‘rooms’ can be easy and affordable by shopping stores like HomeGoods. My favorite trick is to mix-and-match chairs within matching outdoor dining sets, like I did with this solid teakwood table set I found at HomeGoods, to creatively bring the indoors to your outdoor oasis” he says.

Yellow

We could all use a little extra sunshine and there’s no better way to do this than with the color yellow.

“Yellow is the color of optimism and a beautiful way to add a bit of cheer to any space. Try adding hints of your favorite shade of yellow with weatherproof throw pillows, ceramic vases, or handcrafted baskets like I have on my deck’s lounge area, that I purchased from my local HomeGoods for amazing prices! Yellow is also one of Pantone’s colors of the year,” says Quarles.

Fire Pits

Fire pits were a major trend last year and at one point most major retailers were seemingly sold out. Whether built-in or freestanding, they’re just as popular this year. According to broker Gerard Splendore of Warburg Realty, these accessories are the ideal way to get groups outside and reunite with friends and family.

“The fire pit is a gathering spot seen more frequently this summer, as neighbors and friends get reacquainted after isolating for much of the year. Lighting a fire for immediate family members is just as satisfying as it is for a larger group,” he says.

Outdoor Speakers

Whether it is a hardwired system or a portable Bluetooth speaker, as we say goodbye to Zoom happy hours, music is a great way to create an ambiance. “Outdoor music speakers or portable sound systems are a part of every summer gathering this season, which may not be to everyone’s liking. Loud music late at night is a part of the summer landscape, both urban and beyond, but is more prevalent this year as people congregate outdoors,” says Splendore. While you might enjoy the music, you should still be considerate of your neighbors unless you want to read about it on NextDoor.

Outdoor Kitchens

If you’re considering selling your home, there couldn’t be a better time to install an outdoor kitchen. And if you plan to stay, they’re an easy way to help entertain friends and families, agent Karen Kostiw of Warburg Realty tells me.

“What’s a party without the food? Outdoor kitchens have been built out with all of the bells and whistles: fancy grills and smokers, pizza ovens, refrigerators, etc. It’s still difficult for many people to travel, so they are making their outdoor living spaces into a special oasis.”

Greenery Everywhere

While plants have been a major trend for both indoor and outdoor spaces, it’s becoming popular to integrate greenery into other aspects of design. “A lot of cool treatments you’re seeing include stones and grass mixed together, or pavers and grass mixed together,” Blundell tells me.

In addition to this, she has seen a lot of people installing checkerboard floors outside with pavers. “That’s kind of another big trend [along the lines of a] return to classical motifs.”

If grass isn’t growing abundantly in your yard, Blundell suggests mixing it with a bit of faux grass “It’s hard to tell what’s real versus fake,” she says. After all, every home has a few secrets.

Bringing The Indoors Out

Bringing the outdoors inside has been one of the biggest design trends in recent years. Now bringing the indoors outside is having a moment. “At Apartment Therapy’s Small/ Cool Experience, it’s one of our top trends for 2021. And it’s all about maximizing your comfort and being cozy outside no matter the season,” Blundell tells me.

To get this look, she recommends accessorizing your outdoor space with throws, lanterns, and bistro lights. “Turn whatever sliver of space you have, into an outdoor living room where you can kick back and relax. And it goes further than just lighting and textiles. We are starting to see mirrors come outside and sculptural pieces on the sides of homes.”

Outdoor Rugs

Outdoor rugs are another example of bringing the indoors outside.

So what’s the best way to integrate this accessory into your outdoor space? “When it comes to styling, I always start with an outdoor rug as it’s typically an indoor element that can bring beautiful texture and familiarity to an outdoor space. Be sure to look for a rug suited for outdoor use: a material that is easy to clean, won’t fade with sunlight and can handle high moisture and heavy foot traffic,” says Roxy Te Owens, founder and creative director at Society Social.

Outdoor rugs look great on patios or even to section off an outdoor living space in a backyard with a dining table or a sofa and chairs.

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