Business in the Bronx

One of New York City’s five boroughs, The Bronx is one of the most densely populated counties in the United States. The borough is also home to the New York Botanical Garden, Yankee Stadium, the Bronx Zoo, and other famous parks and attractions. With a population of more than 1.4 million people, the Bronx is a mix of European, African American and Caribbean cultures and the birthplace of hip hop. Since the late 1980s, the area has seen significant revitalization and development focusing on new housing. In more recent years, formerly vacant lots in South Bronx are being redeveloped for residential and commercial use.

The Bronx’s Economy

The Bronx is primarily a residential borough, and its economy is focused on local markets. The borough’s economy is service oriented with a majority of private sector sobs within the service sector. Health care, trade, education, and social services account for nearly half of all private sector jobs in the Bronx. In terms of population and employment, the borough is growing. After seeing significant decline up until the 1980s, the Bronx added 53,600 jobs between 1983 and 2012 – an increase of 33 per cent. Since 1980, the Bronx’s population has increased by 20 per cent.

The number of businesses also rose by 26 per cent between 1990 and 2011, with the largest growth in the South Bronx. Most businesses in the area are small, with about two-thirds employment less than five employees. Approximately 80 per cent of businesses in the Bronx employ less than ten employees. Most businesses are in the retail sector, followed by real estate.Office Space in the Bronx

The Bronx saw $1.3 billion in real estate deals in 2013, with an additional $895 million invested in real estate and development. This represents an increase of almost 33 per cent since 2010. Much of this investment has gone towards converting industrial properties into retail and office space, as well as residential space. The area is attractive for millennials looking for a trendy place to live. The influx of younger residents is helping to drive up the office market, fueled by the desire by younger people who want to live close to where they work. Office space is also considerably more affordable in the Bronx than in Midtown or Lower Manhattan.

New Developments in the Bronx

A number of new residential and commercial developments are underway in the area. Projects include Via Verde, a 151-unit mixed-use residential project that will include 71 units for co-ops and commercial space. The new 35,000-square foot HUB Project boasts an 8,000-square foot public plaza along with retail space, restaurants, rental space for local doctors and non-profits, and other commercial space. Located next to the Concourse Plaza Mall, the Melrose Building is also being redeveloped into retail and law office space while a new office complex is being built at the 161st Street Mall on Concourse Village West. Other major developments include the $500 million Bronx Terminal Market, a shopping center completed in 2009 with almost one million square feet of retail space south of Yankee Stadium. Located adjacent to the outdoor Bay Plaza Shopping Center in North Bronx, it is the first new enclosed shopping mall built in New York City in nearly 40 years.

One of the largest development projects in the Bronx relates to the construction of the new Yankee Stadium, which was completed in 2009. A new hotel and conference center is proposed for the site of the former stadium. The Grand Concourse area from 149th Street to 138th Street and from the Harlem River to Morris Avenue has been identified for new high-density residential and commercial development, while the area along 161st Street between Park and River Avenues has been identified for higher residential and commercial density. It is expected these areas will continue to be see new development over the next several years.

Further information on business center opportunities and office space availability in New York.

References:

(1) United States Census Bureau, 2014 (http://quickfacts.census.gov/qfd/states/36/36005.html)

(2) An Economic Snapshot of the Bronx, New York State Comptroller, 2013 (http://www.osc.state.ny.us/osdc/rpt4-2014.pdf)

(3) Next stop for investors: the Bronx, The Real Deal, 2014 (http://therealdeal.com/issues_articles/next-stop-for-investors-the-bronx/)

(4) Betting on the Boroughs, JLL, 2014 (http://www.us.jll.com/united-states/en-us/news/news-specials/the-bronx-new-yorks-hippest-office-market)

(5) Responses to Questions Submitted on BOEDCS’s RFEI for the Development of a Hotel and Conference Center near Yankee Stadium, The Bronx Overall Economic Development Corporation (BOEDC), 2015 (http://www.boedc.com)