Manhattan’s dev sites, rental buildings get a price boost in first half of 2016

Overall property and transaction volumes for investments sales were down

New York /
Jul.July 26, 2016 04:25 PM

Demand for Manhattan investment properties fell in the first half of 2016, although buyers were willing to pay a higher price per square foot for multifamily buildings and development sites, according to a mid-year report from Ariel Property Advisors.

Buyers shelled out $19.3 billion for 361 investment properties in the borough, down 13 percent and 24 percent, respectively, from the same period last year. Manhattan saw its lowest number of transactions, with 304 deals inked, since the first half of 2013.

The multifamily market showed strength in pricing, despite a fewer number of sales in the first six months. Dollar volume totaled $4.2 billion, a 12 percent increase over the first half of 2015, while property volume slipped from 239 to 179 this year. Despite a decline in the number of sales, the average price per square foot rose from $936 to $960 year-over-year.

Office buildings and development sites were hit hardest by the drop in property volume. The number of sales for those types fell by nearly 50 percent year-over-year, although office buildings received a major boost in dollar volume from the sale of four properties each priced over $1.4 billion.

Development sites, similar to the multifamily market, saw an increase in price per square foot, even as other metrics fell. The average price per buildable square foot for development sites reached $618 in the first half of 2016, and deals including the  $101 million sale of 144-155 West 47th Street exceeded this price.


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
From top to bottom: 101 Cooper Street in Inwood, 781 Washington Avenue in Crown Heights and 70-35 113th Street in Forest Hills (Google Maps)
Pent-up demand? Midsize i-sales total $125M after week of zero
Pent-up demand? Midsize i-sales total $125M after week of zero
Mack-Cali Realty CEO Mahbod Nia and River Centre in Red Bank (Mack-Cali)
Mack-Cali offloads Red Bank office complex for $84M
Mack-Cali offloads Red Bank office complex for $84M
Hamed bin Zayed Al Nahyan (Getty)
Pandemic squeeze forces Abu Dhabi fund to reassess real estate exposure
Pandemic squeeze forces Abu Dhabi fund to reassess real estate exposure
1111 Fannin Street, Houston (Google Maps, iStock)
Harris County set to buy downtown Houston office building for close to $29M
Harris County set to buy downtown Houston office building for close to $29M
546 Broadway and Isaac Chetrit (Google Maps)
Uniqlo finalizes $160M buy of its flagship at 546 Broadway
Uniqlo finalizes $160M buy of its flagship at 546 Broadway
688 and 702 Court Street, Brooklyn with Madison Capital managing partner Richard Wagman (Google Maps, Madison Capital)
Madison Capital snatches up Red Hook industrial sites for $45M
Madison Capital snatches up Red Hook industrial sites for $45M
130 Duane Street and 106 Pinehurst Avenue (Google Maps)
Premier Equities picks up former Tribeca hotel for $18M
Premier Equities picks up former Tribeca hotel for $18M
arrow_forward_ios

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

Loading...