For the first time since the pandemic began, broker optimism about an investment sales market recovery in New York City began to materialize during the fourth quarter. As a result, the pace of transactions in the fourth quarter of 2021 accelerated to pre-pandemic levels, including a surge of larger deals in Manhattan that produced the largest quarterly dollar volume in New York City since the third quarter of 2016.
The New York City investment sales market continues to climb out of the COVID-induced commercial property market recession.
While there is a tangible sense of optimism and markets are beginning to return to long-term averages, the recovery seems to remain constrained by externalities impacting the market.
A sense of optimism and excitement is being felt in the investment sales property market following the easing of COVID restrictions and the reopening of many businesses in New York City.
While the transactional numbers have yet to fully demonstrate that optimism, there are promising signs indicating that the second half of the year should return to the transactional averages of 2018.
The New York City investment sales market started the new year with the same muted market-wide performance that it ended with in 2020. While the first quarter’s results left much to be desired, we remain confident that the second half of 2021 will see a return to the long-term transactional averages as the vaccine rollout continues its momentum and businesses and people alike begin to return to the city.