Nonprofit Groups Buy New York Condos

Rather than rent offices and leave themselves vulnerable to rate hikes that could price them out of the real-estate market, nonprofit groups in New York City have begun to buy commercial condominiums outright, reports The New York Times.

New York’s 25,000 nonprofit organizations constitute the largest new market for condominiums, in part because they are exempt from city real-estate taxes, which can save them $5 to $10 per square foot. Also, nonprofit groups are a natural fit for small, long-term offices since they typically have few employees and do not anticipate rapid growth.

A few buildings are actively seeking nonprofit buyers, although some developers feel that the exorbitant price of New York City real estate will be beyond the means of such organizations. Still, the article says, “it seems logical the city might embrace the concept of office-space ownership.”

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