X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Nationally, sale volume has been relatively light in the retail sector, with only $3 billion of significant retail properties closed and no major portfolio transactions or major regional mall sales reported. Despite the weak sale volume, pricing has yet to show any consistent trend of weakening, according to a market report by Real Capital Analytics. On the other hand, the office sector has soared with sales reaching $17 billion in May, driven by major CBD properties and portfolio sales.

On a local level, as far as activity goes, Dan Fasulo, managing director of Real Capital Analytics, tells GlobeSt.com that in New York City, office properties are larger in nature than retail properties as far as actual sale volume. “In New York City specifically, we have already crossed the total office sale record from last year mainly because of trophy assets,” he says.

One such asset he refers to, is Macklowe Properties purchase of former Equity Office Properties Trust properties for $7 billion earlier this year, after Blackstone defeated Vornado for the company and acquired the Manhattan buildings as GlobeSt.com previously reported.

“That purchase created a new pricing level for the market,” he says. “It brought many willing sellers to the table and created an explosive market.”

Fasulo projects to see a continuing trend because the demand will be there. In the retail market, Fasulo explains that there is a finite amount of retail property in New York City. “Most retail is part of a mixed-use property here,” he says. “Nationwide, an overwhelming majority of retail is big box centers and strip centers.”

In other property types, prices for industrial land have surge through the country, while multifamily land prices offer mixed results, with condo sites declining in volume, according to the report.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.