The NY Times reported this week that, as the ultra luxury real estate market in New York City continues to cool, developers appear to be making two kinds of product adjustments: (1) they are converting the penthouses and rooftops of their buildings from premium residential space into amenity spaces for the broader building and (2) they are shrinking unit sizes to help with overall sales and leasing velocity.

According to the New York Times, condo prices on Billionaires’ Row in midtown are down 20-40% since the peak of the market in 2014 when this record was set. So developers are responding with more studios and 1 bedrooms, and amenity spaces – many of which now include high end restaurants also open to the public – that ensure no other building has something you don’t have.

However, there are naturally some differences between condo and rental buildings. Since 2016, 35% of rentals projects in the city have had some sort of penthouse amenity, whereas the number is only 13% for condo buildings. This makes sense given that amenities are such a big driver of leasing. You definitely want your amenities ready for when your leasing office opens.

What product changes, if any, are you seeing in your market right now?

Photo by Aaron Burson on Unsplash

This past summer, an IGA store in Montreal’s Saint-Laurent borough erected “the largest organic green roof garden in the country.” It is about 25,000 square feet and it has a soil depth of only 150mm. 

They also claim that it’s the first supermarket in Canada to sell produce grown on the roof of the actual store. The brand: Frais du toit, or fresh from the roof. There’s even a livestream in the vegetable aisle showing you how the goods are doing overhead.

I would be curious to know what their yields are like and what they are charging for the produce. But it’s certainly a praiseworthy initiative.

Below is a quick video that will give you an idea of what the roof looks like. If you can’t see it, click here.

[youtube https://www.youtube.com/watch?v=-Z69ScyHCfU&w=560&h=315]

The NY Times reported this week that, as the ultra luxury real estate market in New York City continues to cool, developers appear to be making two kinds of product adjustments: (1) they are converting the penthouses and rooftops of their buildings from premium residential space into amenity spaces for the broader building and (2) they are shrinking unit sizes to help with overall sales and leasing velocity.

According to the New York Times, condo prices on Billionaires’ Row in midtown are down 20-40% since the peak of the market in 2014 when this record was set. So developers are responding with more studios and 1 bedrooms, and amenity spaces – many of which now include high end restaurants also open to the public – that ensure no other building has something you don’t have.

However, there are naturally some differences between condo and rental buildings. Since 2016, 35% of rentals projects in the city have had some sort of penthouse amenity, whereas the number is only 13% for condo buildings. This makes sense given that amenities are such a big driver of leasing. You definitely want your amenities ready for when your leasing office opens.

What product changes, if any, are you seeing in your market right now?

Photo by Aaron Burson on Unsplash

This past summer, an IGA store in Montreal’s Saint-Laurent borough erected “the largest organic green roof garden in the country.” It is about 25,000 square feet and it has a soil depth of only 150mm. 

They also claim that it’s the first supermarket in Canada to sell produce grown on the roof of the actual store. The brand: Frais du toit, or fresh from the roof. There’s even a livestream in the vegetable aisle showing you how the goods are doing overhead.

I would be curious to know what their yields are like and what they are charging for the produce. But it’s certainly a praiseworthy initiative.

Below is a quick video that will give you an idea of what the roof looks like. If you can’t see it, click here.

[youtube https://www.youtube.com/watch?v=-Z69ScyHCfU&w=560&h=315]