NYC CRE Sales Surged In Q3 Behind Billion-Dollar Deals
Manhattan’s investment sales market is showing strong signs of life.
There were 81 large commercial sales for more than $8B in the third quarter, according to Avison Young’s quarterly report on Manhattan property sales. The total dollar volume of $8.3B is nearly double the total recorded in the first six months of the year.
There were a number of big-ticket sales over the summer. Brookfield closed on its $1.3B ground lease on the office portion of 666 Fifth Ave., for example, and Silverstein Properties is paying $1.2B to buy several buildings on West 66th St. from The Walt Disney Co. L&L Holding and Normandy Real Estate Partners is paying $900M for Terminal Stores in Chelsea with the aim of redeveloping it.
“Based on the robust sales in the third quarter, we predict that the market is on track to reach 385 sales totaling nearly $23B by year-end, up from 300 sales totaling nearly $18B last year,” Avison Young principal and Head of Tri-State Investment Sales James Nelson said in a release. “While the sales figures are lower than the peak in 2015, the market is normalizing at a 10-year average.”
Office and office condos sales made up 46% of the Manhattan dollar volume during the quarter. In the multifamily market, there were 31 sales for a combined $1.3B, and the average price per SF was $940.
There were 13 development sites traded, with price per buildable SF sitting at $740. Retail sales made up 12% of total sales during the quarter.
Brooklyn is also looking at an improved year, with total dollar volume there set to exceed last year’s total by $1.3B.