NYC Investment Sales Down Almost Forty Percent; Bronx Only Borough With Higher Sales

The Real Estate Board of New York (REBNY) published their Investment Sales Report for the Second Half of 2017 and it shows that real estate investment sales continue to nosedive.  Investment sales have now fallen since the first half of 2015, when New York saw $37 billion in real estate sales. Sales have fallen on every report since 2015 except one period for the second half of 2016.  The report indicates that the total monetary value for all recorded sales was $17 billion throughout the city which is a 37 percent decline compared to the second half of 2016. The total number of transactions also draw a drop of 19 percent year over year.  The only borough that saw a positive investment with respect to monies spent was the Bronx where investors spent $1.5 billion in the second half of 2017 where $1.4 billion was spent in 2016 second half.

Manhattan investment saw a considerable drop as sales decreased 40 percent to $10.1 billion in the second half of 2017 from $17.0 billion in the second half of 2016.  Also of note, transactions decreased 26 percent from 2016.  The report shows also that the average price per square foot of office properties Manhattan declined 12 percent to $823 from $930.

Brooklyn sales for the second half of 2017 dropped 27 percent to $3.2 billion from $4.4 billion in the second half of 2016. The amount of transactions decreased 18 percent to 783 in the second half of 2017 from 954 in the second half of 2016. The value of Brooklyn investment sales transactions accounted for 19 percent of NYC total sales.

Queens investment sales dropped 46 percent from the same period of the second half of 2016.  Total amount spent was $1.9 billion for the period.  There were 18 percent fewer transactions in the second half of 2017, 534 investment sales, compared to 649 in the second half of 2016.

Staten Island saw sales drop 59 percent or $203 million.  The number of transactions completed in the borough declined 30 percent to 190 compared to 273 in the second half of 2016.

Although the report didn't come out totally positive, the outlook still looks upbeat according to the President of REBNY John Banks.

 “The current demand and value of Bronx properties, as seen in our most recent New York City Residential Sales Report, carried over to investment property trades in the second half of 2017.  While the pace of completed transactions lagged citywide in 2017, investors continue to show interest in income-producing properties across the five boroughs.”

 Blue Harbour 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.

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