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Report: Sales Will Rise, Prices Will Fall

NEW YORK CITY-After falling off a cliff earlier this year, transaction volume in New York properties will increase over the next six months, Massey Knakal says.

By Paul Bubny | Updated on August 03, 2009

NEW YORK CITY-Not surprisingly, New York commercial property sales fell off a cliff in the first half of this year but volume is expected to rise over the next six months, says Massey Knakal Realty Services. However, prices will continue declining along with fundamentals, according to Massey Knakal’s newly issued building sales reports.

“I don’t think anybody’s expecting the market to return to the irrational levels we had in 2006 and 2007 anytime soon, but we’re expecting more normal levels of activity as this year winds up,” Massey Knakal’s managing director Ken Krasnow tells GlobeSt.com. “That’s a big divergence from where we were six months ago.”

The preceding six months saw transaction volume reach 25-year lows across the four markets Massey Knakal covers in its reports: Manhattan, Northern Manhattan/the Bronx, Brooklyn and Queens. In Manhattan, where volume is down 74.1% year over year and 84.1% from the early-2007 peak, turnover for the first six months of 2009 was 0.73% of the total stock of properties on an annualized basis. “To put this number in perspective, the lowest turnover we have seen in the last 25 years was 1.6% in 1992 and 2003, both of which were years at the end of recessionary periods and cyclical highs in unemployment,” according to the Manhattan report.

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