As the NYPD and Secret Service place extra security around the Trump Tower, and protests have been held in front on back-to-back nights, residents and guests are facing more thorough scrutiny entering the Fifth Avenue skyscraper where President-elect Donald Trump and his family live. Is the mayhem discouraging potential buyers at the 58-story tower?
While it’s harder for agents to show the residences now, and even prior to Election Day because of security and crowds, interest in the Trump Tower has been picking up for the past couple of months, according to data and brokers.
Interest Is Up, But Not Necessarily Sales
In October, searches and views of Trump Tower, its address (721 Fifth Ave., between 56th and 57th streets) and listings of the building surged 130% year-over-year on real estate portal StreetEasy. That’s up 164% compared with June 2015, when Mr. Trump formally announced his candidacy for president, according to data compiled for Mansion Global by StreetEasy.
Meanwhile, September saw a 30% increase in year-over-year in searches for Trump properties and a 60% increase compared with last June.
However, based on StreetEasy research, the last 18 months of Trump’s campaign have had little impact on the sales of apartments in Trump-branded buildings, including the Trump Tower.
"The impact of the election on his properties remains to be seen," said Krishna Rao, economist at StreetEasy.
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Leonard Steinberg, president of Compass concurred, adding that the growing interest in the Trump Tower won’t necessarily translate into higher sales and prices.
"One of the great benefits of living at Trump Tower now will be the ultimate in security," Mr. Steinberg said. "Some will love that and others may not like all the attention. Being this prolific can be a double-edged sword."
When More Security Is Less Welcome
The security around the Trump Tower has vastly increased in the days prior to and post election. On Election Day, sand-filled trucks from the Sanitation Department were lined up outside the building. They are now on the surrounding blocks, with cement barricades erected to defend against any explosive-laden vehicles, and a no-fly zone is in effect until Jan. 21. There could be further restrictions on pedestrian and vehicular traffic, according to the NYPD.
All these security measures, coupled with ongoing protests and demonstrations by anti-Trump activists, may discourage potential buyers.
"Intensified security might deter some from purchasing in the building," said Maria Manuche, a senior broker with Compass who is handling a Trump Tower rental unit and sold another about two years ago. "We are still in the early days post election. How it will directly affect the value of the building remains to be seen."
Some say the increased security is a good thing, but even those people seem to be adopting a wait-and-see attitude to see how it all plays out.
"Larger cohorts of people will be interested in the building, although things aren’t moving quickly as everybody is taking one day at a time," Ms. Manuche said.
Are There Deals or No Deals?
Currently, on StreetEasy, there are 17 active sales and 15 active rentals in the mixed-use tower, which contains 238 residential units. Mr. Trump, his wife, Melania, and their son, Barron, live in a 66th-floor, gilded triplex palace, estimated to be worth $90 million, according to The New York Post.
A few listings offer options for purchase or rent, bringing the availability to about 27 apartments, about 11% of the total units in the building. The sale prices range from $2.1 million to $23 million; rentals start at $5,410 and go up to $30,000 per month, according to StreetEasy.
There are always quite a number of listings in the building, said Dolly Lenz, founder of the eponymous brokerage Dolly Lenz Real Estate, who has handled listings in the Trump Tower for 30 years. "Most apartments have one or two bedrooms that are used as a pied-à-terre. They frequently change hands because owners buy permanent homes or simply change their minds," she said.
Some agents who represent the Trump Tower have found it easier to market and sell their listings so far this year. Debra Stotts, an agent with Town Residential Real Estate who has six listings at the building, is one of them.
"The Trump Tower is an internationally recognized brand that stands up to its world-class quality. We all agree the value will go up, and buyers see that too," said Ms. Stotts.
One selling point is the impressive views of Central Park, the East River and Manhattan skylines, thanks to "Mr. Trump’s forethought of protection of the view and air rights," according to Ms. Stotts, who also worked for the Trump Organization for eight years.
Regardless, some of the apartments are just not selling.
For example, the most expensive unit, a four-bedroom penthouse (PH63L) has lingered on the market for more than a year. The residence, built for Mr. Trump’s parents and once rented by Michael Jackson for a whopping $100,000 a month, came on the market last October with an asking price of $23 million.
Ms. Lenz, who has the listing, attributed its long availability to oversupply in the upper end of the market, buyers’ skittishness during the election year and challenges of showing the penthouse. But she believes that besides the difficulties of showing the residence, the rest of the challenges will fall away.
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It’s Not All Good News For Some
Bragging rights or the potential for value appreciation that comes with a Trump Tower residence might draw more interested buyers, but at the same time, some current residents are actually moving or considering to move out of the Trump Tower, because they don’t want to be associated with Trump’s eponymous brand.
Residents in the full service, white-glove condominium include celebrities, athletes and some of the world’s most affluent people. Some of them are apparently fed up with the continuous hoopla caused by security, media, supporters and protesters.
According to the New York Post, a top broker is already fielding calls from residents planning to move out of the Trump Tower. "These are wealthy people. They don’t need this, and they can’t take it any longer. They no longer want to stay there. Some of them are already planning on moving out, and they’ll decide later whether or not they want to sell," the broker told the Post.
Write to Fang Block at fang.block@dowjones.com