In large cities throughout the world, including New York City, commercial real estate is big business. While there is no denying the fact that many markets have struggled over the last few years due to the economic downturn, things are beginning to look up.
New York City commercial property sales have the potential to reach a high this year thanks to increased interest in outer boroughs as well as rising prices. In fact, many believe that commercial sales will move past 2007 levels.
In 2013, $37.6 billion in commercial real estate transactions were recorded. While this is a large number, especially when compared to other major cities throughout the country, transactions could reach as high as $63 billion in 2014.
The driving force behind this trend is the expected increase of $100 million purchases. Along with this, investors are sought to be focusing their attention heavily on buildings in Brooklyn, Queens, the Bronx, and northern Manhattan. In 2012, 71 percent of sold commercial properties in New York were located outside Manhattan. This number jumped to 79 percent last year.
There were 3,767 purchases in 2013, which was a decline from 4,077 in 2012. This was due in large part to buyers completing deals in 2012 before an expected capital gains tax increase.
Rising prices could go a long way in helping the New York City commercial real estate have its best year since 2007. By contacting an experienced real estate law attorney, buyers in the Big Apple will have somebody on their side who can assist with every detail of their transaction.
Source: Bloomberg, "NYC Commercial-Property Sales Seen Passing 2007 Peak" Craig Giammona, Jan. 14, 2014