US office investment market remains well below 2019 levels

But some cities’ investment sales volume was down by just single-digit percentages in Q2

National Weekend Edition /
Sep.September 11, 2021 02:00 PM
US office investment market remains well below 2019 levels

New York, LA and Boston Skylines (iStock)

The U.S. office investment market has yet to recover from the pandemic, as sales volume remains well below 2019 levels.

The dollar volume of investment sales transactions across the top 30 markets totaled $28 billion in July. That was 45 percent below the July 2019 amount of $39.5 billion, according to Reonomy figures first reported by Commercial Observer.

Comparing volume in Q2 2021 and Q2 2019, some metro markets appear to be recovering — total volume in the second quarter of this year in New York, Los Angeles, and Boston is just 7 percent below totals in Q2 2019.

San Francisco and Washington, D.C., are still down dramatically compared to the second quarter of 2019. Investment sales volume in both cities was 28 percent lower than two years prior.

Seattle also recorded a 23 percent drop in sales volume between from Q2 2019.

But there was a bright spot. The $5.3 billion in Q2 transactions in New York was nearly triple the total of the first quarter.

And the wider commercial real estate market saw a relatively high level of activity in the second quarter. The $130.9 billion in commercial real estate investment sales was just 2.2 percent lower than two years prior, and up 169.5 percent from the pandemic-slowed second quarter of 2020.

Unsurprisingly, all of the top 30 markets tracked by Reonomy showed some level of recovery from pandemic lows.

[CO] — Dennis Lynch





    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
    The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
    Westchester office park owned by George Comfort & Sons slated for auction
    Westchester office park owned by George Comfort & Sons slated for auction
    250 Park Avenue and IWG CEO Mark Dixon (Google Maps, IWG)
    IWG to open 58K sf co-working site on Park Ave
    IWG to open 58K sf co-working site on Park Ave
    Flight to quality in office real estate leaves trophy buildings the only winners
    Flight to quality in office real estate leaves trophy buildings the only winners
    Flight to quality in office real estate leaves trophy buildings the only winners
    The hotel on Rockaway Beach sold for $25 million (Google Maps)
    Pandemic pricing arrives to middle of i-sales market
    Pandemic pricing arrives to middle of i-sales market
    The big inflation hedge that wasn’t
    The big inflation hedge that wasn’t
    The big inflation hedge that wasn’t
    Microsoft CEO Satya Nadella and American Express CEO Stephen Squeri (Getty, American Express)
    Microsoft, AmEx push back office returns
    Microsoft, AmEx push back office returns
    Facebook CEO Mark Zuckerberg and 770 Broadway (Getty, VNO)
    Facebook still looking for space in NYC
    Facebook still looking for space in NYC
    arrow_forward_ios

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

    Loading...