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Bloomberg
Commercial real estate deals in New York City have taken a major hit as the pandemic continues to roil the local economy.
Investment sales totalled $10.5 billion in first half of 2020, down 54% from a year earlier and a record low since the Real Estate Board of New York (REBNY) began reporting the data in 2015.
“We continue to see the devastating and long-lasting impacts the pandemic has had on the health and stability of the New York economy,†James Whelan, the trade group’s president, said in a statement. “Real estate is a fundamental driver of the city’s economy.â€
City and state tax revenue from commercial-property sales dropped 58% from the first half of 2019 to $314 million, REBNY said in a statement.
The 465 rental apartment properties that sold in the first half traded at an average price of $17 million, a 50% decline from a year earlier, according to REBNY. Prices for office and hotel sales saw decreases of 28% and 37%, respectively, while retail pricing was flat.
The largest transaction this year was Amazon.com Inc.’s purchase in March of the historic Lord & Taylor building on Fifth Avenue for $978 million. Many deals have been frozen as the gap between what buyers are willing to pay and what sellers will accept has widened to a record.