Bob Knakal, NYC commercial real estate market leader, speaks about the investement sales markert in 2014 in this Funnelist guest post.
The investment sales market in 2014 is off to a flying start. It could be a year in which all-time records are set for the number of properties sold and the total dollar volume of sales.
The first quarter of 2014 (1Q14) set a record pace in terms of the number of properties sold with 1,255 properties changing hands. If this pace continues, 5,020 properties will sell is year eclipsing he 5,018 which sold in 2007. This may seem like a very slim margin but it is important to realize that historically first quarters are the slowest of the year. We expect the pace to pick up, as it traditionally does, such that the margin grows to a much more tangible level.
With regard to the dollar volume of sales, we saw $13.2 billion of transactions close in 1Q14. Here, we are on pace for about $53 billion of sales volume for the year which is not quite at the pace to exceed the record of $62.2 billion that we had in 2007. However, the $13.2 billion is the best first quarter showing since 2007 and we anticipate activity picking up to the point where a new record is set this year.
Based on what we have seen thus far in 2Q14, we believe the market is on track for a wild ride for the rest of the year with new records set in these volume metrics, notwithstanding some unforeseen event.
By: Bob Knakal
Chairman | Massey Knakal Realty Services
Mr. Knakal is the chairman of Massey Knakal Realty Services and has personally brokered the sale of approximately 1,500 properties in New York City having a market value in excess of $10 billion.
Follow Bob Knakal on Twitter: @BobKnakal
Follow Massey Knakal on Twitter: @MasseyKnakal