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NYC Investment Sales Rebound from 2017 Correction
The dollar volume of New York City investment sales jumped 35% year-over-year to $45 billion in 2018, Avison Young reported. Powering this increase were 64% Y-O-Y gains in dollar volume for both multifamily and development transactions.
“Investment sales in 2018 rebounded from 2017’s corrective market, and dollar volume ended the year well above the 10-year average of $41 billion,” said James Nelson, head of Avison Young’s Tri-State Investment Sales Group. “Our research indicates that this upward trend in sales will continue into 2019.”
While office accounted for all three of the year’s $1-billion-plus sales, topped by Google’s $2.4-billion deal for Chelsea Market (pictured), the sector’s Y-O-Y dollar volume increase was smaller at 18%. The number of transactions, 164, was also relatively flat from 2017.
Yet, office cap rates compressed to 4.89% during 2018. That’s in contrast to multifamily, where cap rates expanded to 4.62%.
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