NYC Com­mer­cial Real Es­tate Sales Drop in 1st Quar­ter of 2017

The Jewish Voice - - NEW YORK - By: Hadassa Kala­ti­zadeh

For the first quar­ter of 2017, New York com­mer­cial real es­tate sales fell in ev­ery prop­erty-type cat­e­gory, from of­fice buildings to ho­tels. The num­ber of trans­ac­tions was down by 6%. More no­tably, the value of trans­ac­tions de­creased 39% com­pared to the same pe­riod last year, de­clin­ing sig­nif­i­cantly in ev­ery bor­ough ex­cept for Staten Is­land. The to­tal Sales for the first 6 months of 2017 was ap­prox­i­mately $18 bil­lion, down from $29.5 bil­lion in the same pe­riod 2016, as per a re­port from the Real Es­tate Board of New York. Since the or­ga­ni­za­tion be­gan track­ing com­mer­cial prop­erty sales in 2014, trans­ac­tions hit a peak of $37 bil­lion in the first half of 2015, ac­cord­ing to the re­port.

“There is a slow­down in ac­tiv­ity, cer­tainly in terms of high-priced sales,” said Michael Slat­tery, a se­nior vice pres­i­dent at the Real Es­tate Board of New York. The drop in dol­lar vol­ume as well as the num­ber of trans­ac­tions hint at in­vestor un­cer­tainty, said Slat­tery. Ap­pre­hen­sion about ris­ing in­ter­est rates also played a part in the slump.

Even with the big ticket $2.2 bil­lion sale of the of­fice tower at 245 Park Av­enue, of­fice deals dropped 40% to $7.3 bil­lion in the first half of the year. Mul­ti­fam­ily rental buildings with el­e­va­tors, which is gen­er­ally a sta­ble sect, ex­pe­ri­enced a 51% drop to $1.9 bil­lion. Va­cant land, gas sta­tions, and garages were among the only cat­e­gory in which both to­tal sales amount and the num­ber of trans­ac­tions did not de­cline in uni­son. To­tal sales for the cat­e­gory fell 46% to $919 mil­lion, but the num­ber of deals in­creased 25%, sig­ni­fy­ing the prop­er­ties sold this year were less valu­able in com­par­i­son to last year.

For the first half of 2017, Staten Is­land was the only bor­ough to break the trend with an in­crease in com­mer­cial real es­tate sales. Com­mer­cial sales rose 61% to $300 mil­lion. The num­ber of trans­ac­tions also rose 23 per­cent from the pre­vi­ous year, to190. Sales were led by the cat­e­gory of garages, gas sta­tions and va­cant land, as well as in­dus­trial and re­tail prop­er­ties. These cat­e­gories made up 89 per­cent of the to­tal dol­lar amount in sales, with no mul­ti­fam­ily rental buildings sold.

Even with the big ticket $2.2 bil­lion sale of the of­fice tower at 245 Park Av­enue, of­fice deals dropped 40% to $7.3 bil­lion in the first half of the year.

Even with the big ticket $2.2 bil­lion sale of the of­fice tower at 245 Park Av­enue, of­fice deals dropped 40% to $7.3 bil­lion in the first half of the year

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