Read the full article at The Real Deal online.
The New York City property management landscape has largely returned to normal this year after nearly three years of pandemic-related disruption, with stability becoming a key factor for businesses focused on passive income streams. Tenant retention, reducing turnover, minimizing conflict, and navigating regulatory changes like sustainability and insurance cost increases have become critical to success. At the same time, the competition for properties has intensified, driven by a scarcity of new multifamily and condo projects, increased lending, and rising construction costs. This environment has prompted firms to compete for market share in existing portfolios, as seen with major players like FirstService Residential, which secured the number one spot on the list of Top Property Management Firms in NYC and has grown aggressively through mergers and acquisitions, and second-on-the-list AKAM, which focuses on service quality to differentiate itself.
“AKAM CEO Ken Greene said by offering better service, he believes growth — and a spot atop the leaderboard — will follow naturally.”
Despite overall stability, there are significant challenges that property managers must address, including increases in insurance premiums, sustainability compliance costs, and Local Law 97 enforcement, which is set to begin in 2024. Large firms like FirstService and AKAM leverage their size to negotiate savings for clients, while smaller firms face margin squeezes, particularly in affordable housing where rent collection has dropped.
“I think we’ve been a great beneficiary of taking properties from some competitors that were part of an acquisition where maybe they weren’t as successful as the buyer would have hoped,” said Greene.”
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