Commercial sales in Manhattan fell 67 percent last month compared to the previous month, according to a monthly report by research firm Real Capital Analytics.
Sales of residential buildings over the same period fell 53 percent.
The drastic drop was described as a delayed result of the credit crunch, which caused fewer deals to originate in July and August.
The $1.028 billion in commercial sales in September marked the lowest monthly total in 2007. The commercial sales figure included commercial buildings and office and retail condo units.
The residential building market figure of $360.2 million still outperformed February and May’s figures of $233 million and $250 million.
“Not just in Manhattan, but nationwide, we’ve seen an enormous slowdown in the amount of transaction activity,” said Dan Fasulo, Real Capital Analytics’ managing director of market analysis.
Fasulo also noted that seasonal trends likely exacerbated the drop. Summer months usually show slower transaction activity, resulting in a decreased volume of closings in the fall. Fasulo added that October might record the year’s lowest sales figure.
Fasulo said he remained optimistic that commercial sales volume could pick up soon, if buyers and sellers can agree on pricing.
“SL Green’s sale at 470 Park Avenue South was at a 4 or 5 percent capitalization rate, which is aggressive in any market,” he said. “We’re remaining pretty bullish on the Manhattan market.”