New York City’s investment sales market posted a historically strong year in 2018, recording its fifth-highest dollar volume total at $49.2 billion, an increase of 35.0% from 2017. The level of activity in 2018 has trended up, as each quarter recorded an uptick in the number of properties sold compared to the prior quarter. As a whole, 2018 exceeded 2017’s transactional volume by 4.2%, recording 3,864 properties sold.
Multifamily properties, which include walk-up, elevator, and mixed-use properties, led the way in dollar volume with a combined total of $15.1 billion, followed by office properties which recorded a total of $14.7 billion. Mixed-use properties accounted for the largest share of properties sold city-wide with 896 properties sold, followed by walk-up properties with 875 properties sold, continuing the multifamily sector’s strong year. Pricing recorded a slight decline for the first time since 2013, as price per square foot (psf) of core product averaged $526, down 3.4% from 2017, and cap rates averaged 4.67%, up 11 bps year-over-year.
To read the complete Year-End Investment Sales Reports, click on the links below: