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Real Estate Construction in New York City Slows in 2020

Mo Beler

· Construction
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Real estate executive Mo Beler holds a bachelor’s in business administration and accounting from the University of Michigan. Shortly after graduating, he joined Rockwood Capital as a real estate professional. He later took such roles as vice chairman at JLL, founder of Beler Advisory Group, and, currently, senior managing director at Walker & Dunlop. In his present role, Mo Beler handles financing for commercial real estate and stays abreast of real estate changes in New York City.

In December 2020, the Real Estate Board of New York (REBNY) reported that New York City had seen the least number of new building filings since 2010 and 2011. The city had only received 1,187 new building filings in the first three quarters of the year. This was a 21.6 percent decrease compared with previous years. Such a large decrease has not been seen in the city since 2010.

The REBNY first reported this decrease in its inaugural Quarterly New Building Construction Pipeline Report. This publication notes the extreme importance of real estate development when it comes to New York City’s economy. In fact, due to major decreases in real estate activity since the beginning of the COVID-19 pandemic, the city and state had collectively lost $1.4 billion in tax revenue.
While the amount was a drop from 2019, the organization found that things looked better when examining each quarter. Compared to the first two quarters, which saw 360 and 386 new building filings, respectively, the third quarter brought in 441 new building filings.