Gone Cold: NYC CRE Market

Approximately $14 billion of commercial real estate was transacted in the New York City metro during the first quarter of this year, according to data from Cushman & Wakefield Inc. This figure was the lowest for NYC since the third quarter of 2013. Cushman & Wakefield is forecasting the sales of commercial real estate in and around the metro to drop as much as 30% in 2016, following a record year of $75.5 billion.

Oil price slumps, China’s economy, an increase in borrowing costs and a volatile stock are causing investors to sit on the sidelines, for the time being. In addition, “The market is cyclical,” said Robert Knakal, chairman of New York investment sales at Cushman & Wakefield. “It can’t keep going up.”