Our Predictions for
New York City Real Estate
Our Top-line Predictions
Last year was a tumultuous one for the investment sales market in New York City. New rent regulation put a damper on investors’ appetites after the state’s legislation passed in June. Even amid a roaring economy, 2H19 was a sluggish one.
As we head into 2020, there’s cautious optimism around the B6 offices. We surveyed our investment sales and capital advisory teams to gauge opinions on where the market is headed. Here’s what we found.
By the Numbers
By the Market
By Asset Class
Our Broker Predictions
While our internal survey paints a picture about what the entire team expects, each broker has his or her own perspective. So we interviewed six members of B6’s investment sales team to see what they’ll be tracking.
These are the storylines to watch in 2020.
All metrics presented in this report — Dollar Volume, Transactions, Price per Square Foot, and Cap Rate — are based on closed sales that occurred before December 31, 2019. Only portfolios located within Manhattan, Brooklyn, Bronx, or Queens with a sale price of at least $1,000,000 were included in our calculations. We consider the divide between the Manhattan and Northern Manhattan markets to be 96th Street on the eastside and 110th Street on the westside. Data comes from Reonomy, RCA, ACRIS, NYC Open Data, and our own data repositories.
We used the following definitions to record the property type of each transacted building:
- C1, C2, C4, C5, C9
- D1, D2, D3, D5, D8, D9
- K4 and all “S” classes (S0, S1, S2, S3, S4, S5, S9)
- select “K” classes (K1, K2, K3, K5, K6, K9) / select “R” classes (R5, R7, R8, RK)
- All “O” classes: (O1, O2, O3, O4, O5, O6, O7, O8, O9) and RB
- All “E” classes (E1, E3, E4, E6, E7, E9), all “F” classes (F1, F2, F4, F5, F8, F9) and RW
- G0, V0, V1, and other properties purchased for development
We excluded the following property types from our analysis altogether:
- Co-Op/Condo Buildings: C classes (C6, C8), D classes (D0, D4), R classes (R0, RM)
- Residential Buildings: All “A” classes (A0, A1, A2, A3, A4, A5, A6, A7, A8, A9), all “B” classes (B1,B2,B3,B9), and select “C” classes (C0, C3)
B6 Real Estate Advisors, LLC © 2019. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice. It is the responsibility of the prospective purchaser to make an independent determination as to the condition of the property (or properties) in question and prospective purchasers cannot rely upon any representation made by B6 Real Estate Advisors, LLC or any personnel associated with B6 Real Estate Advisors, LLC.