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NYC Land Sales Take a Pause in Q3; Rebound Expected
Trades of finished buildings weren’t the only aspect of New York City’s investment sales market affected by the state’s new rent regulation laws. Fewer deals on development sites went into contract in the second quarter, possibly due to uncertainty over the new laws, leading to fewer closed deals in Q3, says Avison Young.
Total sales were down 47% from Q2, Avison Young says in a new report. However, pricing metrics for land were impacted only slightly.
“If the dip in Q3 was due to market uncertainty from the previous three months, then more deals should close in Q4 as a result of increased activity and a flight of capital from the multifamily sector into the development sector,” said Daniel Tropp, author of the report. “Coupled with the flurry of activity that typically takes place around the end of the year, we are optimistic for a resilient close to 2019.”
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- ◦Sale/Acquisition
- ◦Sale/Acquisition
