David Muessel, Managing Director Brian T. Leary, Managing Partner

Transcription

1 David Muessel, Managing Director Brian T. Leary, Managing Partner

2 New York City 5-Borough Study: Office Sales, Issue: 3, Summer 2O11 (718) OO NYC Office Sales Year-to-Year Review Summer (NYC) At long last the New York City 2010 office sales market showed stabilization over the declines experienced in 2008 and Market conditions improved as investors looked for underpriced opportunities and financing capital began to return to the market. Although volume has not returned to past levels, optimism has resurfaced and expectations have begun to turn positive. Barring the unforeseen, further strengthening of this market segment throughout 2011 can be expected. ($M) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Total Annual Dollar Volume $28,354 $13,834 $8,514 $11,378 $9,179 $3,965 $6, dollar volume of office properties throughout the New York market totaled $6.3 billion, an increase of $2.35 billion over the 2009 levels. While significantly below the peak reached in 2007, sales showed a tilting toward year-end transactions versus early and mid-year transactions, indicating a steady improving trend in market conditions. Year-end weighting trends a generalized upward market direction that is expected to continue into 2011, showing that funding has returned to the market as an expectation of future market condition improvement. Total Annual Number of Sales As a continued indication of general economic improvement, the number of sales transactions completed in 2010 increased to 214 over 2009 s market bottom 173. This 24% increase mirrors the improving market trend reflected in the total sales volume increase for the same period. Although below 2007 s record numbers, this positive trend validates the belief that the market reached bottom in 2009 and that the market is climbing from of the record low point that brought transactions to a near standstill $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Price Per Square Footage Averages $343 $347 $308 $328 $267 $269 $ In contrast with the increase shown in number of properties sold and the overall sales volume, the price per square foot average continued to decline. Prices declined $59 price-per-square-foot, or 18% versus the 2009 decline of $19 price-per-square-foot or 5%. This is reflected by several large Manhattan based transactions at distress pricing. Office space occupancy has begun to climb in recent months, which in turn is expected to counter this slide and return pricing to prior year levels. Office Annual Turnover * Turnover reflects % of annual unit sales against 2010 Building Classification property count of 21,342 properties in the five boroughs. Turnover % 2.0% 2.1% 1.8% 2.4% 1.3% 0.8% 1.0% *Data Source: Win2Data, from 1 st American R/E Solutions

3 Office: Bronx Bronx: Annual Dollar Volume ($M) Bronx Total $ Year 2004 $47,396,557 Year 2005 $120,293,430 Year 2006 $55,053,618 Year 2007 $114,565,799 Year 2008 $22,752,989 Year 2009 $41,095,556 Year 2010 $18,159,578 Bronx : Annual Number of Sales Bronx # of Sales Year Year Year Year Year Year Year Bronx: Price per Square Foot Averages Bronx $/Sq Ft Avg Year 2004 $120 Year 2005 $169 Year 2006 $157 Year 2007 $267 Year 2008 $130 Year 2009 $155 Year 2010 $197

4 Office: Brooklyn Brooklyn: Annual Dollar Volume ($M) Brooklyn Total $ Year 2004 $321,229,718 Year 2005 $361,090,940 Year 2006 $388,912,312 Year 2007 $379,891,187 Year 2008 $102,477,252 Year 2009 $170,546,400 Year 2010 $118,311,757 Brooklyn: Annual Number of Sales Brooklyn # of Sales Year Year Year Year Year Year Year Brooklyn: Price per Square Foot Averages Brooklyn $/Sq Ft Avg Year 2004 $184 Year 2005 $187 Year 2006 $285 Year 2007 $268 Year 2008 $287 Year 2009 $497 Year 2010 $227

5 Office: Manhattan Manhattan: Annual Dollar Volume ($M) Manhattan Total $ Year 2004 $7,993,221,405 Year 2005 $10,226,079,852 Year 2006 $13,202,282,406 Year 2007 $27,468,490,251 Year 2008 $8,868,237,947 Year 2009 $3,624,850,292 Year 2010 $6,051,236,134 Manhattan: Annual Number of Sales Manhattan # of Sales Year Year Year Year Year Year Year Manhattan: Price per Square Foot Averages Manhattan $/Sq Ft Avg Year 2004 $383 Year 2005 $488 Year 2006 $551 Year 2007 $654 Year 2008 $661 Year 2009 $650 Year 2010 $593

6 Office: Queens Queens: Annual Dollar Volume ($M) Queens Total $ Year 2004 $114,287,118 Year 2005 $633,780,098 Year 2006 $156,124,044 Year 2007 $360,899,387 Year 2008 $164,444,728 Year 2009 $115,767,585 Year 2010 $109,943,876 Queens: Annual Number of Sales Queens # of Sales Year Year Year Year Year Year Year Queens: Price per Square Foot Averages Queens $/Sq Ft Avg Year 2004 $190 Year 2005 $259 Year 2006 $293 Year 2007 $304 Year 2008 $349 Year 2009 $232 Year 2010 $220

7 Office: Staten Island Staten Island: Annual Dollar Volume ($M) Staten Island Total $ Year 2004 $37,859,033 Year 2005 $36,702,281 Year 2006 $31,895,702 Year 2007 $29,715,172 Year 2008 $20,919,779 Year 2009 $13,238,648 Year 2010 $19,991,850 Staten Island: Annual Number of Sales Staten Island # of Sales Year Year Year Year Year Year Year Staten Island: Price per Square Foot Averages Staten Island $/Sq Ft Avg Year 2004 $190 Year 2005 $233 Year 2006 $254 Year 2007 $224 Year 2008 $307 Year 2009 $107 Year 2010 $111

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