New York braces for change in how broker fees are handled, developers break ground on Deep Ellum project, and Denton’s Carriage Square is being redeveloped, all in this week’s roundup of real estate news.
Change In Broker Fees Will Cost Jobs And Increase Rents, Experts Say
New York’s Department of State recently reversed the tenant-pays-broker-fee system, and some industry experts are calling it a “death knell that will cost thousands of agent jobs and lead to rent increases.”
Erin Hudson and Sylvia Varnham O’Regan, who authored an in-depth article for The Real Deal New York Real Estate News, say the DOS “guidance” is based on the department’s interpretation of a rent law passed last year “and notes that agents working for landlords will be penalized if tenants pay their broker fees.”
“For the industry, the ruling means new costs for landlords and potentially a shakeup for the entire business model of apartment rentals in the state,” the article explains. “There are close to 79,500 licensed real estate agents and more than 54,000 brokers in New York, according to the Department of State. In New York City in 2018, the Real Estate Board of New York counted more than 12,000 residential brokers as members.”
Real estate attorney Bruce Cohen called the change “insane.”
“The reason it’s insane is ultimately it’s going to do one of two things: It’s either going to raise rents … or it’s going to have [landlords] not use brokers on rentals,” Cohen said.
Source: The Real Deal
Developers Team Up On ‘The Stack’ In Deep Ellum
Three major developers are joining forces to create a 16-story mixed-use building in Dallas’ Deep Ellum neighborhood.
Westdale Real Estate Management and Investment, Ivanhoé Cambridge, and Hines recently broke ground on the project, with completion set for spring 2021.
The Class AA building designed by 5G Studio Collaborative will have 15,000 square feet of street-front retail and 200,000 square feet of office space.
“Amenities will include electric vehicle charging stations, a 10th-floor terrace, fitness center, bicycle storage, coffee/cocktail lounge, and concierge package delivery,” according to reports. “The project will be one of the city’s first new construction projects to receive WELL certification, an accreditation for buildings promoting health and well-being.”
Carriage Square To Rise Again
A popular strip center near Denton’s University of North Texas is getting a second chance after being demolished in 2018.
Construction is underway to restore Carriage Square, which, upon completion, will have 117,621 square feet of ground-floor retail space with four- and five-story sections for multifamily housing. Property owner and developer Westdale Real Estate Management and Investment is overseeing the project, which also includes a parking garage.
The lot was replatted into two pieces of property, drawing a line between West Eagle Drive and south of Wilshire Street. A construction plan is pending on the southern lot, according to reports.