Specializing in Unique Manhattan Real Estate Opportunities
What exactly is a user building? A user building is typically a vacant property that someone purchases to occupy for their own business. This business can be anything from a retail store to a corporation, a nonprofit organization, a foreign government, or a healthcare agency—essentially, any entity that needs space for its own use.
In this section, you’ll find a summary of some of the user buildings we’ve sold, along with a study of the user market dynamic. Over the past 40 years, user buyers have paid, on average, a 16 percent premium above what investors are willing to pay. This reflects a distinctive feature of the New York City marketplace. Take a look at some of the notable companies and organizations that have purchased these buildings to serve as their headquarters. Enjoy exploring these unique transactions.
Selling user buildings in New York City offers a rare opportunity to achieve premium prices not commonly seen in other commercial real estate markets. Unlike most cities where leased properties typically hold more value, in Manhattan, vacant buildings—especially those under 100,000 square feet—often command higher prices. This is because “users,” buyers who intend to occupy the space themselves, are willing to pay a premium. Analysis of nearly 1,000 sales over 37 years shows the average user premium is about 16%, reflecting this unique market dynamic.
Vacant buildings attract buyers who want to occupy for their use rather than rent them out. User buyers value ownership for several reasons including pride of ownership and corporate branding; control over leases and building operations; tax advantages through depreciation; privacy and security; and long-term appreciation. These factors motivate users to pay more than investors, thus creating the “user premium.”
Financial Incentives: Tax benefits and potential for long-term appreciation make ownership attractive.
User buyers come from a wide range of sectors. Retailers lead, accounting for over 20% of sales as they seek stable control of their locations. Educational institutions follow closely with nearly 20%, aiming for long-term space stability. Corporations, non-profits, religious groups, healthcare providers, and foreign governments also actively purchase user buildings, each valuing ownership for strategic and financial reasons. Recognizing these groups helps sellers target their marketing efficiently.
Using detailed market data and buyer profiles allows us to quickly identify and target the right buyers while pricing properties effectively. Comprehensive buyer lists segmented by industry reduce sales time and improve outreach precision. Monitoring current development projects and supply pipelines enables sellers to time sales for maximum impact. Incorporating a user premium in valuations ensures sellers realize the full market value beyond typical investor pricing.