Press Release brought to you by Cushman & Wakefield Capital Markets Group New York

Massey Knakal Realty Services Releases Third Quarter 2012 Property Sales Report

10/23/2012

Massey Knakal Realty Services is pleased to announce the release of their exclusive Third Quarter 2012 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).

“New York City’s property sales market continues to follow a generally positive trend since 2009. Different metrics are performing differently, however. Dollar volume is on pace for about $29 billion this year which would be up only about 6 percent from 2011 levels. The quarterly dollar volume of sales had moderated since the middle of 2011 when volume was running at about $8 billion per quarter. We haven’t exceeded $7.3 billion since. This trend follows the broader economy,”stated Bob Knakal, Massey Knakal Chairman.

“The number of properties sold is on pace for a 40% increase over 2011 levels as we have already seen 2,336 properties trade hands, more than the 2,222 sold in all of last year. In fact, in 3Q12, there were 948 properties sold which is the highest quarterly total seen since 1Q08 and is approaching the 1,000 property threshold seen in 11 out of 12 quarters in the 2005-2007 peak period,” added Knakal.

During the first 3 quarters of 2012 (1Q-3Q12), there were $21.7B in NYC sales, a 7% increase from 1-3Q11. Thus far, there have been 2,336 properties sold, an increase of45% from the same period last year. The 2,336 sales represent an annualized turnover of 1.89%. In 3Q12, there was $7.3B citywide, up 2% from 2Q12, but down 8% from 3Q11.

The investment sales market continues see marked improvement in fundamentals across property classes, with the number of submarkets already surpassing 2011’s annual totals. Once again, office properties dominate dollar volume, accounting for 34% of citywide volume. Walk-Ups lead the way with 25% of property sales volume. Within the different markets Massey Knakal tracks, Northern Manhattan has seen a resurgence already surpassing 2011’s total dollar and property sales volume. Brooklyn is on pace to double 2011’s dollar volume.

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)

  • 578 transactions occurred in 1-3Q12, a 36% increase over 1-3Q11 and an increase of 33% over 2011 on an annualized basis
  • 685 properties sold, an increase of 35% from 1-3Q11 and 30% from 2011 on an annualized basis
  • The aggregate sales consideration in 1-3Q12 was $16.9B, down 3% from 1-3Q11.

 

Brooklyn

  • 691 transactions occurred, a 51% increase over 1-3Q11 and an increase of 44% from 2011 on an annualized basis
  • 859 properties sold, an increase of 53% from 1-3Q11 and an increase of 47% from 2011 on an annualized basis
  • The aggregate sales consideration in 1-3Q12 was $2.2B an increase of 110% from 1-3Q11, with a 78% increase on an annualized basis from the $1.7B in 2011

 

Queens

  • 299 transactions occurred, an increase of 18% from 1-3Q11 and up 18% from 2011 on an annualized basis
  • 350 properties sold, an increase of 25% from 1-3Q11, and up 25% on an annualized basis from 2011’s properties sold
  • The aggregate sales consideration was $1.3M, an increase of 16% over 1-3Q11, with a 29% increase on an annualized basis from the $.13B in 2011

 

Northern Manhattan (north of 96th St. east of Central Park and north of 110th St. west of Central Park)

  • 123 transactions occurred, an increase of 78% from 1-3Q11 and an increase of 71% on an annualized basis from 2011
  • 177 properties sold, an increase of 95% from 1-3Q11 and an increase of 90% from 2011 on an annualized basis
  • The aggregate sales consideration was $550M, up 52% from 1-3Q11, and  up 5102% on an annualized basis from 2011

 

The Bronx

  • 181 transactions occurred, an increase of 32% from 1-3Q11 and up 34% on an annualized basis from 2011
  • 353 properties sold, an increase of 52% from 1-3Q11, and a 46% increase on an annualized basis from 2011
  • The aggregate sales consideration was $688M, an increase of 73% from 1-3Q11, and an increase of 21% on an annualized basis from 2011

 

“Based on externalities, specifically threatened capital gains tax increases, we expect fourth quarter activity to explode. Seeing a $10 billion quarter with 1,000 properties sold would not surprise us,” added Knakal.

www.masseyknakal.com

10/23/2012 - 10:04

Source

Cushman & Wakefield Capital Markets Group New York

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