NEW YORK CITY—For the second half of 2017, the Real Estate Board of New York's Investment Sales Report found the total value of transactions completed reached $17 billion. This was 37% down from $26.8 billion recorded for the second half of 2016. Citywide investment sales fell 19% year-over-year, dropping from 2,880 transactions to 2,334 transactions for the second half of 2017.
Unlike the statistics for across all the boroughs, the Bronx had something to cheer about with gains in investor spending. This was up from $1.4 billion in the second half of 2016 to $1.5 billion in the second half of 2017. However, this increase was in part due to the $115 million sale of the Concourse Village office building at 260 East 161st St. and the $88 million sale of the Frances Schervier Home and Hospital at 720 West 231st St.
The report found compared to the significant declines in investment sales amounts and activity seen in the other boroughs, Bronx investment sales activity remained stable, although slipping 4% year-over-year to 375 sales from 392.
John H. Banks, REBNY president, points to the Bronx for its investment potential. “The current demand and value of Bronx properties carried over to investment property trades in the second half of 2017,” he says. “While the pace of completed transactions lagged citywide in 2017, investors continue to show interest in income-producing properties across the five boroughs.”
Manhattan's total investment sales dropped 40% to $10.1 billion in the second half of 2017 from $17 billion in the second half of 2016. Sales activity declined 26% to 452 transactions in the second half of 2017 from 612 in the second half of 2016. Although Manhattan's investment property trading continues to outpace the other boroughs accounting for 60% of the total dollars spent in the second half of 2017, the share of dollars spent in Manhattan fell since its peak of 74% in the second half of 2014.
Total dollars spent on residential purchases increased in three of the five boroughs during the fourth quarter of 2017, compared to the fourth quarter of 2016. The sales amounts increased 4% to $2.4 billion in Brooklyn; 12% to $2.35 billion in Queens; and 17% to $455 million in the Bronx. Total amounts decreased 12% to $4.79 billion in Manhattan and 4% to $675 million in Staten Island.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
