The Real Estate Board of New York (REBNY) released their Investment Sales Report for the first half of 2019. The report indicates that there were 1,750 total transactions for the period with a monetary value of $22.4 billion. The total number of transaction were down 17% year over year but the monetary value during that same period increased 3%.
The report states that the monetary value was assisted by 5 commercial and retail sales. The 5 sales alone comprised a value of $5.15 billion. This bolstered the consideration for retail property to $2.56 billion which was an increased of 46% from the second half of 2018 and 30% year-over-year. Sales consideration for office buildings for the period was $6.95 billion which was an increase of 7% from the second half of 2018 and 12% year-over-year. It is noted that office buildings as a whole represented the majority of citywide total consideration (31%). James, Whelan, REBNY President believes that the outlook remains positive going in the future. He states “Although several large transactions buoyed the first half of the year, the total number of transactions in the five boroughs declined significantly. We remain confident in the economic outlook for New York City and hope to see a stronger second half of the year in terms of total investments.”
Sales consideration increased in the boroughs of the Bronx, Brooklyn and Queens. We saw a decrease in Manhattan and Staten Island. Here are the figures according to the boroughs below:
Manhattan: Sales in Manhattan came in at $14.1 billion which was a 3% increase in consideration year-over-year. The total amount of transactions were down 22% year over year.
Queens: Sales amounted to $2.41 billion seeing an 11% increase in consideration year-over-year. The number of Queens sales transactions are down 12% year-over-year.
The Bronx: Sales were at $1.33 billion amounting to a 15% increase in consideration year-over-year. Bronx investment sales transactions down 32% year-over-year.
Brooklyn: Sales valued at $4.3 billion which is a 2% increase in consideration year-over-year. Transactions in Brooklyn decreased 20% year- over-year.
State Island: Investment sales totaled $219 million which is a 24% decrease in consideration year-over-year. The total amount of transaction are also down 11% for the period.
In the multi-family sectors:
“Multifamily Rental, Elevator: In Manhattan, multifamily rentals with an elevator accounted for 36 sales or 11% of the borough’s transactions. Those 36 transactions made Manhattan the borough with the most transactions in the five boroughs. Citywide, there were 81 transactions that accounted for 5% of overall transactions.
Multifamily Rental, No Elevator: In Manhattan, multifamily rentals without an elevator accounted for 108 sales or 33% of the borough’s transactions. By number of transactions, this was the most active property category in Brooklyn, which registered 249 sales accounting for 44% of the borough’s transactions.” With the new housing laws going into place it will be interesting to see how much of a decrease we will see in volume and sales consideration we will see in next half year’s report.
BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx. Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.