Posted by Jonathan J. Miller -Wednesday, November 28, 2007, 10:28 PM
Our commercial advisory firm just released its New York City Income Property Market Report for the first half of 2007. My commercial valuation partner John Cicero put the report together. Its the only one of its kind available.
Here’s an excerpt:
The number of closed sales was up 11.3% in the first half of 2007 compared to the prior six month period, driven by the sales activity in Manhattan, including Northern Manhattan. Manhattan saw twice as many walk ups sold in the first six months of 2007 compared to the second half of 2006. Along with the increase in the number of sales, the median price of a Manhattan apartment building showed a sharp increase as well, breaking $500 per square foot for the first time. The median price of a walk-up apartment building in Northern Manhattan also set a record, exceeding $300 per square foot. The outer boroughs were mixed, however, as the price of walk-up apartment buildings in Brooklyn and Queens remained relatively flat, while Bronx saw a decline in price to $100 per square foot. The cap rates for walk-up apartment buildings, which comprise the greatest sample size, illustrated further compression in Manhattan, including Northern Manhattan, and generally remained flat in the Bronx, Brooklyn and Queens. Though the number of sales is up sharply from the second half of 2006, with 2,063 closed sales compared to 1,852, there were nonetheless 13% fewer sales than the first half of 2006, one year ago, which was the most active period of the past four years…
Massey Knakal will distribute over 300,000 hard copies of the report over the next few months.