July 12, 2019
Second-quarter dollar volume for all Manhattan property sales was $4.8 billion, 10% lower than the trailing four-quarter average, according to an Avison Young report. The transaction volume of 76 sales was off 17% from the four-quarter average.
That being said, Q2’s dollar volume was higher than in Q4 2018 and Q1 2019. However, 46% of the dollar volume was attributed to WarnerMedia’s $2.2-billion sale-leaseback at 30 Hudson Yards. Without it, the quarterly dollar volume would drop to the lowest quarterly average since 2010.
“After the sweeping rent regulation law was passed in Albany in June and on the heels of Amazon’s departure, the New York City market is at an inflection point,” said James Nelson, principal and head of Avison Young’s tri-state investment sales group. “As the market adjusts, it remains to be seen if investors will view this as an opportunity to buy with rates at all-time lows.”
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