As the market begins to reset itself, a recent survey by Sterling National Bank, the principal subsidiary of Sterling Bancorp, shows that today New York-based real estate professionals are full of optimism about the future of the NY real estate market over the next few years.
Sterling’s 2014 New York Real Estate Survey revealed that 96 percent of respondents involved with various real estate organizations are either very optimistic or somewhat optimistic about the NY real estate market over the next few years.
At the same time, however, 50 percent of respondents said they are frustrated with their current options for raising capital, highlighting a gap that could impact the industry’s growth potential.
The first-time survey canvassed industry professionals in attendance at Crain’s New York Business’ recent Real Estate Conference. The theme of the June 17th event, which brought together more than 200 New York area health care practitioners and executives, was “What’s Really Driving the Market.”
The survey identified trends, challenges and opportunities in securing financing and raising capital across the health care sector in the greater New York City area.
The key findings include:
•Of the respondents who work for in the real estate market, 48 percent are ‘somewhat frustrated’ with their current options for raising capital and 2 percent are ‘very frustrated.’
•The largest primary source for capital funding among all respondents is ‘private equity’ (35 percent) . Other sources included ‘investment firms’ ‘banks’ ‘specialty lending’ ‘financial intermediary’ or a blend.
•The two biggest financial challenges in the New York real estate market are ‘zoning issues/government’ (44 percent) and ‘competition among developers’ (27 percent).
Among the 200 attendees that attended the 3rd Annual Crain’s Real Estate Conference survey respondents included developers, real estate management, investors, service providers, government agencies, engineers, brokers, and leasing attorneys.
“Sterling has a full array of products and services to support the needs of real estate professionals on both the loan and deposit side.”
David Bagatelle, President of NY Metro Markets for Sterling National Bank. “Real estate finance is risky business, but we have the expertise and resources on the line with commercial bankers dedicated to their client’s relationship and a group of service/support staff who we consider a resource to the client as they evaluate investment alternatives.”
