Second Half 2018 NYC Investment Sales Report

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EXECUTIVE SUMMARY

In the second half of 2018, the New York City total consideration, or total monetary value for all recorded sales, in the New York City investment sales market reached $21.6 billion citywide—a result of 2,102 total transactions. Total consideration in the second half of 2018 increased 27% year-over-year, while the total number of transactions declined 10% year-over-year.

KEY FINDINGS

Total consideration for investment sales increased in Manhattan, The Bronx and Queens.

Investment sales activity in Manhattan outpaced the other boroughs in the second half of 2018, accounting for 66% of total citywide consideration and 20 percent of total citywide transactions.

During the second half of 2018, there were 160 office transactions representing 8% of total citywide transactions. The $6.5 billion office consideration represents stable growth compared to the $6.2 billion office consideration recorded in the first half of 2018 (60% year-over-year increase),

Citywide consideration for retail property totaled $1.75 billion in the second half of 2018 - down 11% from the first half of 2018 (1% year-over-year increase). Compared to the first half of 2018, the number of retail transactions in the second half of 2018 declined 16% from 315 to 266 transactions (12% year-over-year decline),

Sales consideration of multifamily rental buildings without elevators in the second half of 2018 was $2.8 billion - an increase of 10% compared to the first half of 2018 (3.5% year-over-year increase).

Sales consideration of multifamily rental buildings with elevators in the second half of 2018 was $4.9 billion - an increase of 17% compared to the first half of 2018 (62% year-over-year increase).

SALES ACTIVITY BY BOROUGH

Manhattan investment sales totaled $14.2 billion, a 4% increase in consideration year-over-year. Although total consideration was up, Manhattan, similarly to all other boroughs, had a decline in the total number of transactions year-over-year, from 452 to 415 in the second half of 2018. Consideration for Manhattan office sales totaled $6.2 billion, representing 43% of the total consideration of Manhattan investment sales. Additionally, Manhattan’s multifamily rental buildings with elevators represented 58% of the total consideration for all New York City multifamily rental buildings with elevators investment sales.

The Bronx investment sales totaled $1.17 billion, a 21% decrease in consideration year-over-year. The number of Bronx investment sales transactions declined 8% year-over-year, totaling 344 transactions in the second half of 2018. Multifamily rental buildings without elevators accounted for 34% of all investment sales transactions in the Bronx. The Bronx accounted for 22% of all NYC garages / gas stations / vacant space investment sales.

Brooklyn investment sales totaled $3.46 billion, an 8% increase in consideration year-over-year. However, investment sales declined 18% from the first half of 2018 at $4.23 billion. The number of total transactions from the first half of 2018 to the second half of 2018 remained relatively flat, from 720 to 73 3. Year-over-year, the number of investment sales transactions in Brooklyn declined 6%. Industrial property investment sales in Brooklyn represent 65% of the total industrial investment sales consideration in all of New York City. In total, there were 43 industrial transactions at a total value of approximately $622 million.

Queens investment sales totaled $2.66 billion, a 40% increase in consideration year-over-year. Multifamily rental buildings with elevators represented 50% of the total consideration in Queens, however the majority of transactions were smaller sales of Multifamily rental buildings without elevators and garages / gas stations / vacant space. Retail properties represented 10% of total consideration in Queens investment sales and 18% of total investment sales transactions in Queens.

Staten Island investment sales totaled $129 million, a 36% decrease in consideration year-over-year. Most notably, investment sales dropped 55% from the first half of 2018, with the largest decline in Multifamily rental buildings without elevators. In total, the $129 million in investment sales of Staten Island represents 8%% of all NYC Investment sales. Garages / gas stations / vacant space represent the largest amount of investment sales activity in Staten Island, accounting for 37% of total consideration and 56% of all transactions in the borough.

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