market research

February 2011

February 2011 NYC Commercial Real Estate Market Report

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Downsizing has come to a halt. Companies are hunkering down as wall street, hedge funds and technology firms are back to business as usual.
This means that Manhattan office and retail vacancies will decline over time, as the economy improves.

New York Market Overview

  • Total Manhattan Class A Office vacancies stayed at 8.9 % vacant
  • Total New York City Office vacancy increased from 7.8 % vacant to 7.9 % vacant
The flip may be staging a comeback in some New York City neighborhoods, but overall, commercial property values are still falling across the five boroughs, even as sales activity has begun to thaw. On a per-square-foot basis, commercial properties traded at 8.4 percent below their 2009 prices last year.

New York City homeowners may see their property taxes increase sharply next year, and owners of condominium and co-op apartments will likely be hit hardest. Taxes on condos are expected to increase by 9.6 percent, or an average of $490, while co-op taxes would rise by 7.5 percent, or $384. Single-family homeowners will see a 2.8 percent, or $107, tax hike. In Manhattan, that means average tax increases of $970 to $11,348 for condos and $594 to $9,351 for co-ops.

The number of investment transactions that closed in New York City in 2010 totaled 33, at an average of $496 per square foot. The market value of the sales completed was more than triple the 2009 total of $1.9 billion, an increase fueled by a strong rebound in the leasing market, sustained growth in New York City's employment level and a recovery in credit availability.
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