Massey Knakal Realty Services Releases Year-End 2013 Property Sales Reports

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These unique, industry-leading, reports provides a comprehensive study of the investment sales market by product type in the entire New York City area (Manhattan, Northern Manhattan/Bronx, Brooklyn, and Queens).

NYC Transactional Activity Chart

“As anticipated, after a slow start, investment activity in New York continued to strengthen over the course of 2013," stated Bob Knakal, Massey Knakal Chairman.

Massey Knakal Realty Services is pleased to announce the release of their exclusive Year-End Property Sales Reports. These unique, industry-leading, reports provides a comprehensive study of the investment sales market by product type in the entire New York City area (Manhattan, Northern Manhattan/Bronx, Brooklyn, and Queens).

“As anticipated, after a slow start, investment activity in New York continued to strengthen over the course of 2013, stated Bob Knakal, Massey Knakal Chairman. “As the economy and property fundamentals improved, a second half investment rally pushed 2013’s dollar volume close to last year’s result. Additionally, we saw double digit increases in values across the board last year. These dynamics will carry over to 2014 – get ready for a record year,” added Knakal.

In 2013, the total volume of buildings sold in the New York City commercial real estate market place was $37.6 billion, a moderate decline of 9% from the $41.2 billion in 2012. With an aggregate total of $23.6 billion, dollar volume in 2H13 increased by 58% from 1H13. Following 2H12, which was pushed up by an expected capital gains tax increase, 2H13 was the highest bi-annual result since 2007.

There were 2,862 transactions consisting of 3,767 buildings, a decrease of 8% from 2012. The turnover rate was 2.3% of the total stock of properties citywide. The average price per property in New York City in 2012 was $10 million, down slightly from $10.1 million in 2012. Outside of Manhattan 2,978 buildings changed hands, up 4% from 2012, but the number of buildings sold in Manhattan was down 34%. As a result, the share of Manhattan of NYC’s total number of properties sold was down to 21% from 29% in 2012.

Massey Knakal’s Pricing Index, which tracks price per square foot change in New York City across the core property types posted a year-over-year increase of 4%. This moderate growth, however, is caused by the increased share of properties sold outside of Manhattan, which lowered the citywide average. The individual boroughs all saw double-digit price increases, led by Manhattan with 16%.

The highlights from each report include the following:

Manhattan (south of 96th Street on the east side and south of 110th Street on the west side)

  • 789 properties sold, falling 34% from 2012, but 5% above the long-term average
  • The aggregate sales consideration was $28 billion, down 10% from 2012, with an average price per property of $36 million
  • $11 billion of the annual dollar volume, or 38% were realized in 4Q13

Brooklyn

  • 1,443 properties sold in 2013, a decline of 2% from 2012
  • The aggregate sales consideration in 2013 was $3.6 billion, a decrease of 25% from 2012 (It should be noted that one transaction, King Plaza Mall sold for $750m in 2012)
  • Development sites generated 23% or $845 million of 2013’s sales volume

Queens

  • 750 buildings sold, a 17% increase from 2012
  • In 2H13, 482 buildings sold, up 80% from 1H13 – setting a post-recession bi-annual record
  • The aggregate sales consideration was $2.3 billion with $1 billion of that realized in 4Q13

Northern Manhattan (north of 96th St. on the east side and north of 110th St. on the west side)

  • 400 properties sold, an increase of 22% from 2012 and a new all-time high (Partly supported by the sale of an 84 building portfolio)
  • In 4Q13, 146 properties sold, 85% higher than the quarterly average between 2005 and 2007
  • The aggregate sales consideration in 2013 was $2 billion, an increase of 80% from 2012

The Bronx

  • 385 properties sold, a decrease of 13% from 2012
  • The aggregate sales consideration in 2013 was $1.4 billion, a decline of 7% from 2012
  • At $134 million, Fordham Place was the largest single property transaction after the recession

For more information on these reports, contact Shannon Krause, Public Relations Manager, at skrause(at)masseyknakal(dot)com.

About Massey Knakal:
Massey Knakal is a diversified real estate company, exclusively representing owners in the sale, retail lease and financing of their properties. With over 150 employees, four offices and thorough coverage of the five boroughs of New York City, Westchester County, Long Island and New Jersey, Massey Knakal dominates the New York metropolitan area's property transaction marketplace. For over two decades, Massey Knakal has focused on building strong relationships within the neighborhoods we represent and developing an extensive database of customers that includes all of the major investors, institutions, agencies and individuals that are active in real estate in the area. Our dedication to neighborhood knowledge and relationship building is a source of continuing pride and success for Massey Knakal, and through our Territory System™, our agents have partnered with owners throughout the city to close over 4,500 transactions, with an aggregate value in excess of $17 billion since 1988. http://www.masseyknakal.com

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Shannon Krause

Justina Lombardo
@MasseyKnakal
since: 09/2009
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