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After '09 Slump, Office Condos Will Rise Again

NEW YORK CITY-The benefits of owning rather than leasing small spaces look more appealing now that financing has improved, says Time Equities' Rudder.

By Paul Bubny | Updated on February 08, 2010

NEW YORK CITY-Although the year-over-year decline in Manhattan’s office condominium market for 2009 was not as steep as it was in the investment sales arena, it’s telling that slightly more than two-thirds of the transaction volume last year came from a single building. Forty-three of the 70 condo sales for ’09 occurred at 139 Centre St., which co-owners Young Woo & Associates and Angelo Gordon Real Estate Funds are marketing as medical office space within the Chinatown community.

With a total of 54,328 square feet sold for a combined $63.2 million, the 139 Centre deals averaged 1,820 square feet each. Absent 139 Centre—which Time Equities Inc.’s Michael Rudder says is a niche unto itself within a niche sector of just 76 buildings and 8.2 million square feet—the office condo market in Manhattan saw a drop-off from 64 transactions in 2008 to 27 last year.

“Massey Knakal just released a report saying that the number of investment sales in ’09 was down 75% from the previous year and 92% from the peak,” Rudder tells GlobeSt.com. “This is similar, although the decline isn’t quite as drastic.”

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