Commercial sales fall

New York /
Oct.October 31, 2007 01:50 PM

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.”


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Mindspace founders Dan Zakai and Yotam Alroy. (David Garb for Mindspace)
Mindspace gets $72 million induction to continue shared-space expansion
Mindspace gets $72 million induction to continue shared-space expansion
Chetrit’s Queens industrial loft signs warehouse startup for 90K sf
Chetrit’s Queens industrial loft signs warehouse startup for 90K sf
Chetrit’s Queens industrial loft signs warehouse startup for 90K sf
Decentraland
This $2.4M virtual land deal is largest ever for digital real estate
This $2.4M virtual land deal is largest ever for digital real estate
Donald Trump (Getty)
Pandemic dashed one-quarter of Trump’s NYC retail tenants
Pandemic dashed one-quarter of Trump’s NYC retail tenants
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...