Buyers and sellers of apartment properties are fighting more in New York City.
“A widening gap between buyers and sellers has emerged over the past months as operations have become more challenged — lengthening closing times and placing upward pressure on capitalization rates,” according to the Marcus & Millichap’s Multifamily Research Market Report for the third quarter 2017.
Deal flow and dollar volume slipped roughly 20 percent over the past 12 months, driven by a slowdown in listings amid uncertainty over the outlook for interest rates and 421-a regulation.
Buyers accept cap rates in the high 3% range in Manhattan. Properties in the outer boroughs typically sell with cap rates in the high-4% and mid-5% range.