Real estate in brief

January 19, 2010 02:57PM

Weak year-end performance leads to 2010 doubts for commercial real estate
While few would argue that 2010 could get much worse than 2009 for the Manhattan commercial real estate world, it’s unlikely that it will get much better, either, according to the most recent Manhattan Economic Indicators report from Eastern Consolidated. Commercial property sales volume was weak through the end of 2009, with preliminary projections suggesting that the total volume for the year was just $5.7 billion, a steep decline from $23.6 billion in 2008 and $62.8 billion in 2007. This slow pace, combined with the accelerated rate of job losses seen in the end of 2009 — as nearly 30,000 jobs were lost in New York City in October and November alone — could lead to a prolonged anemia in the commercial real estate sector, according to the report, as the average asking rate for Manhattan office space dropped by an average of $10 per square foot at the end of last year. “There is contrasting evidence that the economy may see the bottom soon,” the report said.

Real estate advisory firm buys three hotel notes

Gemini Real Estate Advisors has purchased three New York City performing hotel notes. The notes have a combined value of $43 million and all are current on their mortgage obligations, according to Gemini. Gemini representatives did not immediately respond to requests for comment regarding the hotels, but a press release said they were in Midtown and had a combined 173 rooms. TRD


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