News: Brokerage

Housing has costs, and those costs rise - by Aaron Weber

Aaron Weber

Over the last 8 years, taxes increased 61% for a 10 unit building (with 3 rent regulated units) in the Chelsea neighborhood of Manhattan that is managed by Weber Realty.

Payroll expenses have jumped for supers and administrators as minimum wage in NYC increased 88% from $8.00/hr in 2014 to $15.00/hr in 2020. Maintenance and repairs also rose higher as exterminators, plumbers and electricians charge more for labor.

For the same 10 unit Chelsea building, insurance premiums increased an average of 8.12% per year over the last 3 years. Higher premiums are due to rising building costs, supply chain disruptions, and greater losses from floods, hurricanes and wildfires in recent years. Property insurance is also 15% more expensive for landlords than a standard homeowner policy because insurers are taking on additional risk due to the presence of renters.

Heating oil prices jumped 77% in just 2 months for a 40 unit residential building in Morningside Heights. According to Weber Realty Management “It cost $6,034.00 to fill up their oil tank on 1/10/2022. Two months later, on 3/11/2022 it cost $10,653.86 to fill up the same tank (which needs to be refilled every 2-3 weeks).”

In addition, between 2020-2021, cleaning expenses rose 40% due to COVID concerns. The stay at home mandate also drove up water usage by 10% during the same time period. Also in the summer of 2021, many pre-war buildings suffered damage from Hurricane Ida that required thousands of dollars in repairs.

Aaron Weber is owner/property manager with Weber Realty Management, New York, N.Y.

READ ON THE GO
DIGITAL EDITIONS
Subscribe
Columns and Thought Leadership
Lasting effects of eminent domain on commercial development - by Sebastian Jablonski

Lasting effects of eminent domain on commercial development - by Sebastian Jablonski

The state has the authority to seize all or part of privately owned commercial real estate for public use by the power of eminent domain. Although the state is constitutionally required to provide just compensation to the property owner, it frequently fails to account
AI comes to public relations, but be cautious, experts say - by Harry Zlokower

AI comes to public relations, but be cautious, experts say - by Harry Zlokower

Last month Bisnow scheduled the New York AI & Technology cocktail event on commercial real estate, moderated by Tal Kerret, president, Silverstein Properties, and including tech officers from Rudin Management, Silverstein Properties, structural engineering company Thornton Tomasetti and the founder of Overlay Capital Build,
Strategic pause - by Shallini Mehra and Chirag Doshi

Strategic pause - by Shallini Mehra and Chirag Doshi

Many investors are in a period of strategic pause as New York City’s mayoral race approaches. A major inflection point came with the Democratic primary victory of Zohran Mamdani, a staunch tenant advocate, with a progressive housing platform which supports rent freezes for rent
Behind the post: Why reels, stories, and shorts work for CRE (and how to use them) - by Kimberly Zar Bloorian

Behind the post: Why reels, stories, and shorts work for CRE (and how to use them) - by Kimberly Zar Bloorian

Let’s be real: if you’re still only posting photos of properties, you’re missing out. Reels, Stories, and Shorts are where attention lives, and in commercial real estate, attention is currency.