One thing Cushman’s data, which was cited by Crain’s, doesn’t show is a drop-off in pricing. Bob Knakal, chair of the brokerage’s New York investment sales group, said that’s because among the relatively fewer transactions that closed last year, sellers were able to achieve top dollar for their properties.
“The fewer deals that did get done were at healthy prices because the seller got the number they were looking for,” Knakal said. “It disguises the fact that overall land values have dropped.”
Knakal said future closings will reflect a drop in values. Land that may have traded for $800 per square foot a year ago, for example, are now valued at about $600 per square foot, or roughly 25 percent cheaper.
“It takes a while, a year to 18 months, before sellers get used to the new reality and begin selling at the new market prices,” Knakal said. [Crain’s] – Rich Bockmann