Commercial Property Development in the Central Manhattan Area Essay

Commercial Property Development in the Central Manhattan Area - Essay Example This paper addresses the main drivers for commercial property development in central Manhattan area over the last 6 years. This adopts special reference to the fundamental economy of the USA, as well as the Times Square in Manhattan, which reflects the role of IBIDS in commercial property development. Commercial property in the USA suffered adverse effects from the global economic challenges. Indeed, the stalled economic recovery from the global recession destabilized the USA’s commercial real estate (CRE) recovery (O’Brien, B., Sheth, S., & Mahajan, S 2013, p.1). This has been because of economic stagnation in Europe, huge foreign debts, problems in the world labor force, global economic recession that started in 2012, correlation between USA and Eurozone economic growth, globalization, demeaning liquidity trap, lack of business innovation, and slow growth in emerging economies like China and India. Nevertheless, there are probable measures that reinforced the commerci al properties industry in the US especially in Manhattan. Question 1: Main drivers for commercial property development demand Demand and supply are important factors in all markets. In Manhattan, the demand for commercial property has steadily increased over the past few years. Therefore, new commercial property development in Manhattan has aimed to meet the demand in the market. According to O’Brien, Sheth, & Mahajan (2013), the use of social media, enhancing innovation, cloud computing, and adopting enterprise mobility in the commercial proper