After A Record Stretch, This Market Finally Hits A Wall

by Daniel Schwen

It seems like nobody wants a piece of NYC’s iconic skyline these days. After six years of record growth, it looks like the NYC property market has gone cold.

After a record year of $75.5B of deals in 2015, sales of office towers, hotels, stores and other buildings in NYC are expected to go down as much as 30% this year, Cushman & Wakefield data reveals.

Around $14B of commercial real estate changed hands in the country’s largest property market during the first three months of this year—the lowest tally since Q3 '14.

“When you’ve had a pretty steady ascent for several years," Eastdil Secured senior managing director Doug Harmon tells Bloomberg, "it’s logical that investors look over their shoulders for a reason or a sign that the music might stop.”

With the current economic turmoil, volatile stock markets—and oh yeah, let's not forget the oil—the current CMBS-market slowdown makes deal-making even tougher to come by.

“That type of debt is important for very large transactions,” RCA VP Jim Costello says. “Manhattan is an expensive place. Every deal is hundreds of millions of dollars.”

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