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Investors Keep Returning to Manhattan Office
Asian buyers may be keeping a low profile, but that hasn’t stopped investment in Manhattan’s office sector from rebounding after a lackluster 2017. Yardi Systems’ Commercial Café reported that sales of Manhattan office properties reached $4.5 billion in the first quarter, up 126% year over year and down only slightly from the strong Q4 that ended last year.
Led by Google with its $2.4-billion acquisition of Chelsea Market (pictured), domestic buyers filled the void left by foreign investors. Average Manhattan office prices reached a new high of $1,266-per-square-foot.
“While the total dollar volume recorded during the first months of the year is nowhere near the high point of Q1 2015, when 21 office properties changed hands for more than $10 billion, the market seems to be stabilizing after a series of disappointing quarters,” according to Commercial Café. For the moment, “fears of an office bubble bursting in Manhattan are unfounded.”
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