[Miller Cicero] New York City Income Property Market Report Second Half 2007 Is Available For Download
Posted by Jonathan J. Miller -Thursday, May 15, 2008, 11:49 AM
Our commercial advisory firm just released its New York City Income Property Market Report for the second half of 2007 for Massey Knakal. My commercial valuation partner John Cicero prepares the report. It’s the only report of its kind in the New York City commercial market.
Here’s an excerpt:
In the second half of 2007 credit tightened considerably as the losses in sub-prime mortgages worked their way through the financial markets. While indicators are somewhat mixed, in general during this period prices for income property remained stable throughout the city, though the number of sales dropped, in some instances quite dramatically. This reflects the â€œwait and seeâ€ attitude that characterized the period, with fewer buyers bidding and sellers reluctant to lower prices. The fundamentals of the market remained strong, however, with high apartment rents and very low vacancy. The prospect of turning over below market rent-regulated units to higher market levels continues to attract investors, and credit, though tighter, was still available albeit from different sources. Cap rates and gross income multipliers remained stable.
The number of sales dropped 16% from the first half of 2007 to the second half, though the decline was only 7% from the second half of 2006 to the second half of 2007. On a calendar year basis, there were overall 10.5% fewer sales in 2007 than 2006. Though the number of walk-up apartment buildings in Manhattan showed a sharp decline from the first half of the year, calendar year 2007 sales actually show a 16% increase over calendar year 2006…
Massey Knakal will distribute over 300,000 hard copies of the report over the next few months.