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.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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