Manhattan Office Strong in '02

NEW YORK CITY-The first 10 months of 2002 may have seemed sluggish, but when it comes to office building sales, the numbers indicate otherwise. According to new Insignia/ESG data, sales are brisk and prices are setting record highs.

“Investor interest in commercial real estate as an attractive long term alternative is prevalent,” says Richard Baxter, executive managing director of Insignia/ESG’s Capital Advisors Group. “There’s a paucity of product available, financing options are rampant and inexpensive, and there’s still very little new construction coming online.”

Midtown saw the most of the activity, with 26 transactions totaling 26 million sf compared to 10.4 sf for all of 2001. And average prices through October of ’02 are up 10% at $387 per sf, compared to a $350 average last year.