Fewer Giant Deals in Manhattan

Investors are making fewer big deals in Manhattan — but they are still making deals.

“Uncertainty over rising interest rates and foreign capital has given investors pause. Meanwhile, this has created more opportunity for lower-priced parcels with development potential following the extension of the Affordable New York Housing Program, formerly known as 421-a,” said John Banks, president of the Real Estate Board of New York (REBNY).

Investors bought and sold just $18 billion in investment real estate properties in the first half of 2017, down 39% from the year before. But the overall number of transactions only fell 6% — so that the average transaction size has fallen sharply.

The volume of deals fell in every borough except Staten Island.  They fell the most in Manhattan, slipping 49%.

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