NYC will shatter the property sales record with $73.9 billion compared to 2007's $63 billion, if the 4th Quarter keeps pace. 3Q15 saw New York City reach $17.9 billion, up 3.4 percent from 2Q15, and the third-highest quarterly total on record. Nearly $7.5 billion of that total came from office properties, an all-time high for the sector.

Foreign demand continues to be a big driver, accounting for 19.8 percent in the New York City metro and 22.4 percent in Manhattan. In addition to Chinese buyers, Korean, Singaporean, and Canadian buyers continue to be active here, especially for trophy assets. The Japanese have returned with $1.5 billion in investments this year. Other notables include Norway's sovereign-wealth fund, which deployed $4.9 billion over the last decade, and the Qatar Investment Authority, which invested $4.5 billion over the same period. As market fundamentals tighten and global economic uneasiness crops up, it should be interesting to see if this trend continues.

Although big ticket sales continue to drive record sale volume, the number of sales is declining. There were 1,286 properties sold in 3Q15, a 3 percent decrease from the previous quarter. We are projecting a total of 5,172 sales this year, compared to 5,533 sales in 2014.

Pricing also seems to have settled. The average price per square foot in the City swelled above $500 for the first time on record in 4Q14, and have fallen slightly over the course of the year, now averaging $495 per square foot in 3Q15. Manhattan pricing remained flat, while the only borough to appreciate significantly from last quarter was Brooklyn, climbing 8 percent to $374 per square foot. Average citywide cap rates have begun to increase for the first time since 4Q13, rising 15 bps to 4.8 percent in the third quarter.

The above statistics certainly are inconsistent. Record sales volume is clearly positive, but not if the underlying sales of assets worth $25 million and under are beginning to lag, which account for over 90 percent of the sales. A plateau or decline in pricing would also be a first in this seven year price appreciation run.

It is also important to realize that sales averages always give a rear view mirror indication, as they could have been negotiated up to six months before the transaction and the quarter closed out. Some would suggest that there has been a pullback in pricing in some asset classes, which are occurring now, but have yet to be reported.

These is no doubt a real concern about the condo development market with a 30 month supply of units over $7,000,000, according to the Corcoran Sunshine Group. However, the supply for units below $3,000,000 is under two months. Nonetheless, this has put downward pressure on land pricing, especially now that construction lenders are pulling back.

Retail rents, in some high street corridors, have also settled. The Real Deal reported one hundred vacant stores in SoHo. Although this could be a shift from mom-and-pop shops to national retailers, and a movement to side streets, it has certainly caused concern amongst owners and investors.

Meanwhile, multifamily pricing has seen a boost despite the negative implications of the Rent Act of 2015, which limits the deregulation of rent stabilized apartments. Miraculously, the Manhattan average has increased by $105, reaching $976 per square foot with elevator properties up 19 percent. Brooklyn's elevator property increase rose a shocking 69 percent. Walk-up buildings have seen the largest increases in Northern Manhattan at 25 percent, and the Bronx at 24 percent. It would be hard to see how cap rates could compress any further (with Manhattan walk-ups currently averaging 3.4 percent) in expectation of interest rates going up.

The office segment of the market also continues to be a bright spot as indicated by the record number of purchases this year. Cushman & Wakefield reported the lowest vacancy on record in Midtown South at 6.2 percent with average asking rents of $66 per square foot. Midtown is at 8.9 percent and $76 per square foot, and Downtown strengthening at 10.3 percent and the best value at $58 per square foot. Brooklyn matched Midtown South with only 6.2 percent of vacancy in an undersupplied market with 24 million square feet, compared to Manhattan's 394 million square feet.

Those who remain bullish on New York City look to the unprecedented job growth over the last 5.5 years with 517,000 jobs added, the most jobs ever tracked in the shortest period of time. The 90.8 million Millennials, the largest segment of the US population, are fueling the growth of not just New York City but other gateway cities.

Will this trend of certain asset classes performing while others suffer, continue? One thing I have learned throughout my career is, don't bet against New York!