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Manhattan, Bay Area Run Neck and Neck in YTD Office Sales
Although Manhattan has led the way year-to-date in office investment sales, the Bay Area’s total lags by only $34 million, according to Yardi Matrix data. In fact, the Bay Area and San Francisco combined have YTD sales of $7.1 billion, nearly twice the $3.8 billion in Manhattan.
Yardi Matrix’s latest national office report notes that following a sluggish start to 2019, transaction activity escalated in the second quarter. Nationally, office sales totaled $38.8 billion through June. However, “increased transaction volume will need to continue for the rest of the year to match 2018’s total of $91.1 billion,” the report states.
One factor that may spur activity is debt pricing: interest rates have declined since late 2018, while spreads have widened between acquisition yields and the 10-year Treasury. “The cost of borrowing may have decreased enough to make some deals pencil as borrowers lock in low rates,” according to Yardi Matrix.
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