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With the imminent foreclosure of the fancy Trump SoHo in the news, one has to wonder whether all of the dozens of other newly built residential and commercial properties Downtown will really sell. If they build it, will people really come?
The World Trade Center towers are most empty and unleased. It looks as if government agencies will be the main occupants.
The Brookfield Place renovation has also having trouble attracting corporate tenants. The deals announced so far have been obtained only after giving away years of free occupancy. Some tenants have even left Brookfield after just a few months of moving in.
What about those 1000-feet high residential buildings going up all over? Will those really sell condos, or will they all be rentals? Will the condo conversions taking place in Battery Park sell their units, or will they become distressed properties like 225 Rector was?
The Ritz-Carlton residential property in south BPC can’t sell the most expensive units, and a realtor resorted to PR stunts to try to move things. They conned CNBC and others into hyping several adjacent apartments as being one big “most expensive apartment in New York”.
One thing is for sure: When Janet Yellen raises the interest rates, the entire real estate bubble will deflate once again. The billionaire foreign investors purchasing trophy apartments for tens of millions will go away. It will be 2007 all over again.