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Buying Far Outweighs Building in Manhattan
For sheer dollar volume, Manhattan led all U.S. markets in total capital commitments with greater than $50 billion last year, says Real Capital Analytics’ Jim Costello. It also led in construction starts, with $16.8 billion committed to new development in 2018.
The borough lags other U.S. markets, though, in construction’s share of total capital. Acquisitions represented better than two-thirds of that $50 billion-plus.
RCA data shows Manhattan to occupy the same percentage range as roughly half the 38 U.S. markets with acquisition and construction volume of greater than $5 billion in 2018: between 30% and 45%.
Construction’s share of total capital committed to Manhattan may be larger than it was for markets such as San Francisco, Atlanta and Houston. Yet, construction accounted for a larger share of the total capital in the outer boroughs during 2018, as well as in Kansas City, Miami and Austin, according to RCA.
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