Demand for Downtown Living Shows Double-Digit Growth

ALBANY, NY (03/07/2011)(readMedia)-- The Downtown Albany Business Improvement District (Albany BID) announced today the results of an update to the Residential Market Potential for the Downtown Albany Study Area. Originally conducted in 2002 with updates following in 2006, the 2011 version shows a 53 percent growth in demand for downtown living options.

The recently completed residential market study for downtown Albany was carried out by Zimmerman Volk Associates, a firm specializing in urban residential market analysis.

The report concludes that overall demand for downtown living grew from approximately 2,440 households in 2006 to 3,750 households in 2011. Demand for rental housing has increased to 1,980 apartments, up 83% from a demand for 1,080 units in 2006, and the desire for condominiums increased 47% to 1,106 units, up from 790 condos in 2006.

"We were very pleased to see that the study reinforced what we knew to be true-that there is an increase in desire for downtown living," stated Georgette Steffens, Downtown Albany BID Executive Director. The report found that 97% of the apartments in downtown Albany are occupied and articulated that the downtown market can fill between 134 and 287 new units per year.

Several developments are currently underway to capitalize upon this demand, including 15 new studio and one-bedroom apartments at 4-6 Sheridan Avenue and 24 luxury condominiums at 17 Chapel Street. Other projects are in the predevelopment stage including 111 North Pine Street which will include nine luxury 1-bedroom apartments.

"We are really excited to be involved with this project," commented Keith Holmes of Centurion Realty Group, the company developing 111 North Pine. "The City has really helped us move the project forward through their comprehensive incentive package and efficient review process."

"We outlined downtown residential development as a top priority in the Capitalize Albany plan, and we have been putting programs and incentives into place to encourage additional units, particularly conversions of underused buildings in our downtown corridor," said Mayor Jennings. "The results of this survey provide further confirmation of what our actual rental market is showing us – all of our downtown apartments now are 100 percent occupied and more and more people are looking for high quality units. Together with our local lending partners, we must continue to help the development world keep up with this demand."

The report identified two demographics that were most likely to locate in downtown Albany: younger singles and couples and empty nesters.

Amar and Nada Lal recently relocated to the region from central New York and chose to live downtown. Both work in the technology sector with Amar working for an aerospace company in Coxsackie and Nada working for IBM, often using the company's downtown office. "We could not have found a more convenient location than downtown," stated Mr. Lal, "there are great restaurants, a renowned theater district, the Times Union Center, the Empire State Plaza and Washington Park within walking distance. It's a big plus to be at the center of government, as well as having competitive universities, high technology and manufacturing infrastructure all within a reasonable radius."

Jeff Killeen, Chairman and CEO of GlobalSpec, also choose to live downtown over a suburban location. "I didn't want to look at or end up in another 'cookie cutter' apartment complex that had little charm, few interesting amenities, and no curb appeal. (In downtown) you are living in a beautiful historic building where every room is literally a conversation piece."

An executive summary and the full report can be found on the Downtown BID's new website.