The second half of the 2009 Manhattan market of real estates reflected the start of a new era. This was marked by the bankruptcy of the Lehman Brothers in September 2008. sellers, buyers, and real estate professionals slowly adapted to changes including stringent if not irrational commercial properties underwriting, increased unemployment and retrenchments, reduced compensation, a high price correction, tax credit for first time commercial property buyers, rising foreclosures, decline of appraisal quality, expanded market times and a number of other challenges (Yudelson, 2009, p.45). The increased level of sales in the latter half of 2009 was encouraging; a recovery in real estate development department was later attained in 2012 by an increased employment rate and greater consumer access to credit.
The property development sector in Manhattan has flourished recently. It has seen an influx of both the commercial property developers and tenants. This is attributed to several factors which include high commercial property demand, government incentives, Land regulations and rates of inflation. This factors among others are discussed in details below.
Government incentives and policies are among the major drivers to the property development in the Manhattan Business center. The US administrators have come up with friendly policies that have created an ample atmosphere for investors in the Manhattan. The action of the government in what it executes or it does not execute directly affects the property industry. Investors have ventured in investing their money in real estate. This has led to springing up of many commercial properties in the Manhattan. The government has played a great role since it has gone to an extent of reduced taxes so as to encourage development in the area (Giles, & Blakely, 2001, p.45). The state government regime has seen more funds been directed into property sector.