Have you been to the Lower East Side recently? There’s a little neighborhood sandwiched between the south side of East Houston Street and the north side of Delancey Street, full of the most fascinating development activity.
The uniqueness of this area, I suspect is driven mostly by the large inventory of apartment buildings still very heavily under rent stabilization and the mom-and-pop feel of the retail spaces, many still available under $125/psf/yr.
So the price of land for development is still within feasible measures compared to neighboring Soho or Tribeca. A few development listings found through Cushman & Wakefield and Besen & Associates, came in within $400 and $900 per buildable square foot. These typically include certain FAR bonuses for exclusionary housing or low income housing tax credits. This seems hardly like a bargain, from a neighborhood that has been transitioning in price and investment activity for years–but finally, has caught up as any new development will likely cost as must as most competing NYC neighborhoods. The value here is in the existing stock of real estate, both residential and commercial where the inventory of older spaces are abundant enough to offer a thriving economic environment for up-and-coming businesses.
Lastly, there’s a cool factor in LES that I have not yet seen replicated in other NYC neighborhood; it’s colorful, busy, full of style and hustle. The shot below was taken by a local butcher on a cigarette break outside of a graffiti-clad market, who volunteered to capture me in this scene because he could not stand to see such an artistic opportunity go to waste for my lack of a personal photographer. This sort of thing only happens in a place like this.