Manhattan investment sales market hits record high

Nearly 5,200 commercial properties sold in 2014, more than ever before: CushWake

TRD New York /
Jan.January 30, 2015 12:30 PM

The Manhattan commercial investment sales market had a rollicking 2014, with 5,197 properties trading hands, beating the previous record of 5,018 in 2007, according to a year-end report released today by Cushman & Wakefield.

“2014 was the best investment sales market we have seen in the past 30 years,” said Bob Knakal, chairman of New York investment sales for Cushman. “More properties were sold in the city than ever before.” Knakal pointed out that the dollar volume surged 45 percent to $55.8 billion, which was coupled with a 20 percent appreciation in value citywide. “It was truly a spectacular year!”

However, though 2014 smashed the record for number of investment properties sold, it failed to beat the dollar volume record, with $55.8 billion coming in second to 2007’s $62.2 billion. That was the year that Harry Macklowe paid $7 billion for the Equity Office portfolio.

Sales activity in Brooklyn, Queens, Northern Manhattan and the Bronx exceeded $15.1 billion in 2014, according to the report, surpassing the previous peak for the outer boroughs by a whopping $5 billion. “We expect this record level of dollar volume to continue and possibly be exceeded in 2015,” said Adrian Mercado, Cushman’s vice president of research.

Manhattan led the market with $41 billion in investment sales, and Brooklyn increased its sales 67 percent over 2013 with $6.4 billion.

Retail prices increased across every borough except the Bronx, with price-per-square-foot going up 34 percent in Manhattan, 27% in Northern Manhattan, 18 percent in Brooklyn, and 7 percent in Queens.

The dearth of available land combined with strong demand drove price per buildable square foot up 33 percent citywide, with Manhattan finishing the year at $579 per buildable square foot, the report states.


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Here’s what the $10M-$30M NYC investment sales market looked like last week
Shawn Mobley (left), is being replaced by Andrew McDonald (right) as CEO of the Americas at Cushman

Shakeup at Cushman: Mobley out, McDonald promoted

Shakeup at Cushman: Mobley out, McDonald promoted
The Transamerica Building in San Francisco and Michael Shvo (Rawpixel Ltd via Flickr)

Shvo to buy Transamerica Building at 10% discount after Covid delay

Shvo to buy Transamerica Building at 10% discount after Covid delay
1107 Dekalb Avenue (Google Maps)

Outer boroughs dominate mid-market deals last week

Outer boroughs dominate mid-market deals last week
68 Gold Street with CW Realty CEO Cheskie Weisz and 1340 East Bay Avenue (Google Maps)

CW Realty purchase makes TRD’s mid-market i-sales list

CW Realty purchase makes TRD’s mid-market i-sales list
Investors are still bullish on senior housing, despite headline struggles in nursing care facilities throughout the pandemic. (Getty)

“It’s a need, not a want” for many residents: Investors eye long-term gains in senior housing

“It’s a need, not a want” for many residents: Investors eye long-term gains in senior housing
Square Mile Capital’s Craig Solomon and Hackman Capital Partner's Michael Hackman with Silvercup Studios at 42-22 22nd Street in Long Island City (Hackman; AAK via Wikipedia Commons)

Hackman, Square Mile in talks to buy Silvercup Studios

Hackman, Square Mile in talks to buy Silvercup Studios
JPMorgan Chase CEO Jamie DImon and 410 Madison Avenue (Getty Images, Google Maps)

JPMorgan Chase closes on $115M buy of Bank of China’s former HQ

JPMorgan Chase closes on $115M buy of Bank of China’s former HQ
arrow_forward_ios

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

Loading...