NYC Tourism Forecast Revised Downward
Tourism in New York City is expected to decline this year, with the total number of visitors projected to reach 64.1 million—3.5 million fewer than previously forecasted. The most significant drop is anticipated among international travelers, with visits projected to decrease by 17% compared to earlier estimates and down 6% from last year.
This decline is largely attributed to recent national policy changes, including new tariffs and immigration rules, which have reduced travel budgets and discretionary income for visitors. Canadian tourists account for a notable portion of the decrease.
While hotel occupancy rates have remained stable at 85% and room rates continue to climb, major attractions such as the Empire State Building have seen a slowdown in ticket sales. Hospitality investors remain cautious, with new hotel developments constrained by economic uncertainty.
State Budget Allocates Housing Funds and Tightens Investor Rules
New York State’s latest budget includes over $500 million in housing-related initiatives:
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$50 million for a rental voucher program to assist at-risk and homeless tenants.
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Temporary easing of condo conversion rules for buildings constructed after 1996 with over 100 units, lasting for six years.
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$100 million allocated to the "Pro-Housing Supply Fund," supporting over 300 certified localities with infrastructure upgrades for new development.
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$1 billion earmarked to support New York City’s City of Yes for Housing Opportunity initiative.
The budget also extends higher tax rates for top earners until 2033 and imposes new restrictions on institutional investors, barring them from bidding on single- and two-family homes for the first 90 days they are listed. These measures aim to tighten regulation of investor behavior in the single-family market.
Amazon’s Midtown Acquisition Confirmed at $456M
Amazon has closed its purchase of the 522 Fifth Avenue building in Midtown for approximately $456 million. This price is significantly higher than the $350 million RFR paid for the office portion in 2020. Public records initially reflected a lower transaction value, but sources confirmed the higher figure based on the combined office and retail condo components.
This acquisition comes as Amazon continues its push to expand its office footprint in Manhattan, aligning with its recent efforts to bring employees back to the office.
Old Navy Signs NYC’s Largest Retail Lease of the Year
Old Navy has signed a 15-year lease for a 55,000-square-foot flagship store at JEMB Realty’s 50 West 34th Street (Herald Towers). The new space on 34th Street will replace its current location at 150 West 34th Street, which has already been leased to Primark.
The new store aims to provide a more "experiential" shopping experience, featuring curated products and interactive elements. The deal is expected to revitalize Herald Square, which has been slower to recover compared to other Manhattan retail corridors.
BNF Capital Acquires Meatpacking Asset for $21M
BNF Capital, a UK-based investment firm, is under contract to purchase 58-60 Ninth Avenue for $21 million through a structured bankruptcy sale. The deal will help Delshah Capital reduce its outstanding $35.2 million debt on two Meatpacking District properties.
The property, which includes both retail and residential units, has been impacted by declining retail values and the challenges of refinancing post-COVID.
RFR Loses Chrysler Building Lease
The New York State Supreme Court has formalized the termination of RFR Holding’s ground lease at the Chrysler Building, effective September 2024. Cooper Union retains ownership of the property and is owed $18.8 million in back rent and other expenses by RFR.
Demolition Underway for Upper East Side Condo Project
Demolition has begun at 1477 Third Avenue, where a 15-story residential building is planned by Kano Real Estate Investments. The project will feature nine condominium units and ground-floor retail space. Demolition is expected to wrap up by June, though a construction timeline has not been announced.
Sales Launch for VITA Passive House in Hudson Yards
Sales have officially begun for VITA, a two-building residential project in Hudson Yards billed as New York City’s largest Passive House condominium development. Located at 499 and 501 Ninth Avenue, the buildings will feature 121 residences with eco-friendly designs that reduce energy consumption by up to 90%.
Amenities include rooftop terraces, a gym, a golf simulator, and a spa. Pricing starts at $1.25 million, with initial closings anticipated in late 2025.
Real Estate Forum Highlights
At The Real Deal’s NYC Forum, celebrity broker Ryan Serhant criticized Compass, comparing its strategies to a "Barnes & Noble" approach in a digital age. Compass CEO Robert Reffkin defended the company’s methods, emphasizing the importance of private listings and MLS compliance.
Mayor Eric Adams also spoke at the event, highlighting his administration’s achievements under the City of Yes for Housing Opportunity initiative, which focuses on rezoning and affordable housing development.