New York Metropolis Funding Gross sales Drop 54% In First Half of 2020

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New York City Investment Sales Drop 54% In First Half of 2020

NEW YORK CITY– –Commercial real estate transactions declined significantly in the first half of the year with 1,229 registered transactions totaling USD 10.5 billion, according to the Real Estate Board of New York. This corresponds to a 32% decrease in the transaction volume and a decrease in the total amount of 54% compared to the first half of 2019. These figures represent an all-time low since REBNY began reporting in 2015.

The largest transaction during the reporting period was WeWork's sale of the Lord & Taylor building, 424 5th Avenue, to Amazon in March for $ 978 million.

The downward trend in activity in the first six months of the year hardly eased as all districts and asset classes posted significant declines.

Here are the key takeaways from the report.

  • Multi-family rentals, elevator transactions decreased 17%, consideration decreased 65% and the average price decreased 58% year-over-year.
  • Multi-family rental and non-elevator transactions fell by 44%, the consideration by 55% and the average price by 21% compared to the previous year.
  • Office transactions decreased by 12%, the consideration by 45% and the average price by 38% compared to the previous year.
  • Garages / gas stations / auto transactions decreased 29%, consideration increased 3%, and average price increased 44% year over year.
  • Vacancy transactions fell by 33%, the consideration by 17% and the average price by 24% compared to the previous year.
  • The industrial transactions remained unchanged, the consideration increased by 32% and the average price by 32% compared to the previous year.
  • Hotel transactions fell by 75%, the consideration by 81% and the average price by 24% compared to the previous year.
  • Retail stores decreased by 13%, the consideration by 19% and the average price by 7% compared to the previous year.
  • Commercial condominium transactions declined by 70%, the consideration by 98% and the average price by 94% compared to the previous year.
  • Manhattan sales transactions decreased 35%, consideration decreased 59% and average price decreased 37% year over year.
  • Bronx sales transactions were down 23%, consideration was down 37%, and average price was down 18% year over year.
  • Sales transactions for investments in Brooklyn decreased 25%, consideration decreased 41% and average price decreased 22% year over year.
  • Queens sales transactions were down 41%, consideration down 57% and average price down 28% year over year.
  • Staten Island sales transactions decreased 36%, consideration decreased 18% and average price decreased 29% year over year.

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