Commercial sales drop 31 percent

New York /
Sep.September 18, 2008 12:25 PM

Sales of commercial properties were 31 percent lower in the first half of 2008
in Manhattan, Brooklyn, Queens and the Bronx compared to the same period last
year, according to a report released by Massey Knakal Realty Services today.

The largest decline in the number of sales was in northern Manhattan, where sales volume fell by 63 percent, and the
smallest decline was in Queens, where sales
dropped by 18 percent, the report, prepared by Miller Cicero, said.

In the same period, consolidated median prices fell by 5
percent to $222 per square foot compared to a year earlier. The report only looked
at sales over $500,000.

Meanwhile, the median capitalization rate rose year-over-year to 5.8 percent
from 5.5 percent while the gross rent multiple dropped to 11.5 from 12.4.

“Given rapidly rising expenses in multifamily properties, investors are
starting to rely more heavily on cap rate analysis rather than traditional
[gross rent multiple] analysis,” Robert Knakal, chairman of Massey Knakal,
said in a statement. “The value of in-place income has increased recently
and has made financing more feasible.”


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
Seattle Seahawks receiver and newly-licensed realtor Tyler Lockett along with 812 245th Place Northeast in Sammamish, Washington (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Redfin)
NFL star earns his real estate wings
NFL star earns his real estate wings
Toll Brothers' Douglas Yearly and property at Sparks, Nevada (Toll Brothers)
“Honey, I bought the town:” Buyer ends up with big chunk of subdivision
“Honey, I bought the town:” Buyer ends up with big chunk of subdivision
Mark Cuban with Mustang Texas (Illustration by The Real Deal with Getty)
Mark Cuban’s Jurassic Park is extinct
Mark Cuban’s Jurassic Park is extinct
Alex and Sue Glasscock with 150 Sister Servants Ln (Loopnet, Getty)
Celebrity favorite Ranch Malibu to open in Hudson Valley
Celebrity favorite Ranch Malibu to open in Hudson Valley
75 Park Lane South (Plaza Construction)
This year’s top-selling Hudson County homes
This year’s top-selling Hudson County homes
arrow_forward_ios

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

Loading...