The New York commercial property market saw significant performance gains last year over 2010, according to the Massey Knakal Year-End Property Sales Report. The report is a comprehensive view of property transactions in the New York area, with highlighted regions that include Manhattan, Brooklyn and Queens. Total sales volume for 2011 was 80% higher than the previous year at $25.6 billion, although it was 59% lower than peak commercial property sales were seen in 2007. The average price for property in the report was $12 million, down slightly from the average in the peak year. For more on this continue reading the following article from National Real Estate Investor.
Massey Knakal Realty Services has released its exclusive Year-End Property Sales Reports.
In 2011, the total volume of buildings sold in the New York City commercial real estate market place was $25.6 billion, an increase of 80 percent from the $14.2 billion in 2010. The $25.6 billion is down 59 percent from the peak of the market in 2007, and down 15 percent from the seven-year average of $30 billion.
There were 1,751 transactions consisting of 2,122 buildings, an increase of 25 percent from 2010. The turnover rate was 1.29 percent of the total stock of properties. The average price per property in New York City in 2011 was $12 million, slightly off the average of $12.3 million in 2007. Manhattan accounted for 85 percent of total dollar volume with $21.7 billion, while Brooklyn accounted for 35 percent of total building sales.
Massey Knakal’s Pricing Index, which tracks price per square foot change in New York City across all property types posted a 6 percent increase in price per sq. ft. with all markets up from 2010. Northern Manhattan led the way with a 16 percent increase in price per square foot.
The highlights from each report include the following:
Manhattan (south of 96th Street on the east side and south of 110th Street on the west side)
- 666 properties sold in 2011, a 35 percent increase from 2010, but still 33 percent off the market high set in 2007
- In 4Q11, 162 properties sold, down 22 percent from 3Q11
- The aggregate sales consideration in 2010 was $21.7 billion, an increase of 87 percent from 2010 and an increase of 38 percent from 2009-10 combined
- 742 properties sold in 2011, an increase of 29 percent from 2010
- In 4Q11, 185 properties sold, a 20 percent increase from 4Q10 but down 1 percent from 3Q11
- The aggregate sales consideration in 2011 was $1.5 billion, an increase of 49 percent from 2010, but still 31 percent off the seven-year average for Brooklyn dollar volume of $2.2 billion
- 358 buildings sold, 19 percent increase from 2010
- In 4Q11, 78 properties sold, which was the lowest quarterly output in 2011
- The aggregate sales consideration in 2011 was $1.3 billion, an increase of 139 percent from 2010. (This includes the sale of 28-10 Queens Plaza for $415.5M). Excluding this sale, dollar volume increased 64 percent
This article was republished with permission from National Real Estate Investor.