Manhattan Commercial sales JUMP — Q2 2011

Depending on the report of Eastern Consolidated real estate investment service report, “The jump was due to an increase in large transactions: 25 transactions of $100 million or more closed in the quarter up from 11 in the first quarter. Most of the results show a sharp increase in volume compared to last quarter”. They also said that “The 25 sales of $100 million or more, 14 were office buildings, four were multifamily sales, five were hotels and two were land or conversion sales. Despite the jump in dollar volume, the number of transactions was the same as in the first quarter: 187. These numbers are still preliminary, some transaction data comes in weeks after the quarter closes, but these results show that the market indeed accelerated in the quarter”.

 This big jump was due to the seller coming into the market and properties price is still affordable. According to President, Daun Paris, “Investor demand for Manhattan office assets has far outstripped supply for several years, and as a result, cap rates have dropped to historic lows for this class, that is 4% – 6%, which has finally drawn sellers into the market.”

If you like to read this report, please email me at diana.wu@elliman.com. I will email you as attachment.

 

Advertisements
Both comments and trackbacks are currently closed.
%d bloggers like this: