The Real Deal New York

Manhattan mixed-use property values fall by half, Massey report shows

July 29, 2009 11:43AM
By Adam Pincus

A buyer could get twice as much mixed-use space in Manhattan in the first half of 2009 than in the same period a year earlier, according to a new citywide mid-year report from commercial sales firm Massey Knakal Realty Services.

The prices for mixed-use properties fell 53 percent to $535 per square foot from $1,135 per square foot in the first half of 2008, the firm’s data show.

The dramatic reduction highlights the changes in the market from a year earlier as credit tightened and the economy weakened.

Sales in the first six months of the year in Manhattan, in all categories of buildings priced higher than $500,000, were down 82 percent to $1.9 billion, from $11 billion in 2008, and $30.8 billion in 2007, the firm reported. The transaction volume fell 74 percent from the first half of 2008 to 95 sales, totaling 122 buildings.

Company Chairman Robert Knakal said he expected prices would continue to fall even as the numbers of transactions increased.

“Even with a significant increase in volume, we expect prices to continue to drop as fundamentals deteriorate, caused by continuing increases in unemployment,” he said in a statement.

In Manhattan, the 15 mixed-use sales in the first half of the year included 81 Baxter Street which sold for $3.57 million and 102 Charles Street with a sales price of $6.5 million, city records show.

In other segments of the Manhattan market, the price of multi-family walk-up apartment sales fell 17 percent to $494 per square foot in 2009 from $599 per square foot in the same period in 2008, and elevator building prices fell to $468 per foot from $532 per square foot last year, the company reported.

In northern Manhattan and the outer boroughs, walk-up prices fell as much as 41 percent. In Northern Manhattan, which last year had the top price per square foot for multi-family walk up buildings, prices dropped 41 percent to $124 per square foot from $211 per foot.

Queens, which now has the most expensive walk-up prices in the outer boroughs, saw prices decline 13 percent, the smallest percentage drop in the city. The sale prices fell to $176 per square foot this year from $204 per square foot in the first half of 2008, the Massey Knakal figures show.

Prices for walk-up apartment buildings in Brooklyn fell 18 percent to $148 per square foot, while in the Bronx they dropped 23 percent to $76 per square foot. 

BSR – Manhattan 1H09w

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