The Real Deal New York

The worst may be behind NYC’s commercial property market

Ariel Property Advisors: "It’s hard to believe 2018 is going to be lower than 2017"
February 11, 2018 01:47PM

Times Square. (Credit from back: Sam Valadi; Max Pixel; pol sifter/Flickr)

It’s not necessarily going to get better, but it may not get worse; that’s the conclusion of brokers who’ve been keeping a finger on the pulse of New York’s commercial real estate market.

Across the board, the city’s property sales have fallen by 50 percent since 2015, but last year’s sales put the decline into stark contrast; according to the Wall Street Journal, large deals over $100 million totaled $11.6 billion in 2017 compared to the 2016 total of $23.5 billion for such transactions.

But hope is appearing on the horizon according to Ariel Property Advisors noting a number of properties that went into contract in the last quarter of 2017.

“I am not sure we are turning a corner in terms of transactions, but it’s hard to believe 2018 is going to be lower than 2017,” Ariel president Shimon Shkury told the Journal.

According to Shkury, the market is experiencing a “self-inflicted” correction brought on by climbing prices and a glut of supply. [WSJ]Erin Hudson