“The Lord of the Numbers” in New York City Real Estate is Mr. Jonathan Miller. His appraisal firm, Miller Samuel, is without a doubt the most noticed and respected in town. Recently, Mr. Miller declared that now is the best time to buy a residential piece of property in the Big Apple since 2006.
Why does he think so? The difference between the cost (in terms of cash flow) of buying and renting is the narrowest in the last six years.
Particularly Miller says that, according to his statistics, the price of buying today is about 20.8 times the annual rental price for the same apartment.
This multiple had reached its peak at 26.7 in the second quarter of 2008 when even Mickey Mouse and Donald Duck could buy an apartment in Manhattan borrowing a few dollars from rich Uncle Scrooge.
Jokes aside, the analysis accounts for inflation but not the interest payment on the mortgage; this makes me think that, given the mortgage interest rates these days, the multiple (20.8)  is right now even more favorable in real terms.

commercial leases
There is a part of Manhattan that has lately begun to experience a renaissance: Midtown South (the area, broadly speaking, includes Chelsea, Flatiron, Soho, Hudson Square and TriBeCa).
Many companies, especially in the tech, design, fashion and creative industries, have been migrating here and generating great business for the commercial landlords.
According to data by Cassidy Turely, in the first four months of the year Midtown South has seen 630,000 square feet of positive absorption (meaning additional space that has been leased excluding renewals) while the total for Manhattan as a whole was 860,000 in the same period.
The area has therefore represented 73% of the total activity for the period January-April in Manhattan.

remodeling Times Square
The city of New York is about to implement the construction plan that will permanently transform Times Square into a pedestrian paradise. The area has been blocked from vehicle traffic for a few years now thanks to Mayor Bloomberg. New work around Broadway and 7th Avenue will be finished at the end of 2013, and the updated Times Square will comprise more lamps, benches and a mosaic pavement.

the rental battle
Meanwhile rentals in NYC continue to escalate in price.
Especially in upper and middle segments, there are very few residences available on the market. We brokers have been realizing this over the past several months.
For example, I recently put on the market a beautiful duplex apartment not far from Gramercy Park, with a garden. The asking price was $7,500.
Interest was immediate, and after six days there were four offers on the table. After a few days of negotiations, the owner decided to go with the offer of $8,000. Consider this: That was not even the highest offer!
When selecting a renter, there are many elements evaluated by the landlord and the broker who is advising him/her. While the monetary component is important, the personal situation and the financial stability of the individual/family are other factors that can make a difference. The landlord can decide to rent to a candidate that does not necessarily offer the highest price but has the best overall profile. Sometimes an informal chat between landlord and prospect can be the deciding factor.

a bit of history
Adam Pincus of The Real Deal writes that during this month in 1905, Metlife announced its plan to build the world’s tallest tower at Madison Avenue on 24th Street. By the end of the construction in 1909, it was indeed the record holder with 700 feet in height. This record didn’t last long because the Woolworth Building was built in 1913 – surpassing its predecessor to become the tallest building.
The tower of the Metlife building in Madison Square was a copycat to the original San Marco Square in Venice. Popularity for “Made in Italy” goes back even then!

This is it for today, my Dear Friends.
I am always available to answer your questions and provide you with more information on New York City real estate.

Warmest Regards,
Riccardo Ravasini