Commercial real estate transactions for multi-family, development and user properties in Northern Manhattan jumped 7.43 percent in 2011 compared to the previous year, according to a report released today by Ariel Property Advisors, while the dollar value for the transactions increased by 4.22 percent for the year.
In total, Northern Manhattan had 188 commercial real estate transactions totaling $519 million in 2011, compared to 2010, which saw 175 transactions totaling $498 million in gross consideration.
“Real estate fundamentals strengthened in the favor of property owners throughout the year,” said Michael Tortorici, vice president of Ariel. “Unemployment slowly but steadily declined. Interest rates hit record lows. Rental rates continued to recover and approached levels not seen since peak 2008 levels.”
Meanwhile, Northern Manhattan’s multi-family asset class saw 85 transactions for $341 million in 2011, a 23 percent increase in transaction volume, but a slight decrease in dollar volume compared to 2010, which saw 68 transactions totaling $331 million.
Fifteen development site transactions closed at a total consideration of $55 million in 2011, compared to 2010, which saw 26 transactions for a total of $61 million. The average price per buildable square foot increased to $73, a 5.14 percent increase from 2010 levels.
The number of transactions does not necessarily reflect the number of properties sold in each deal. — Katherine Clarke