Globe St. | December 4, 2015 | James Nelson
NYC will shatter the property sales record with $73.9 billion compared to 2007’s $63 billion, if the 4th Quarter keeps pace. 3Q15 saw New York City reach $17.9 billion, up 3.4 percent from 2Q15, and the third-highest quarterly total on record. Nearly $7.5 billion of that total came from office properties, an all-time high for the sector.
Foreign demand continues to be a big driver, accounting for 19.8 percent in the New York City metro and 22.4 percent in Manhattan. In addition to Chinese buyers, Korean, Singaporean, and Canadian buyers continue to be active here, especially for trophy assets. The Japanese have returned with $1.5 billion in investments this year. Other notables include Norway’s sovereign-wealth fund, which deployed $4.9 billion over the last decade, and the Qatar Investment Authority, which invested $4.5 billion over the same period. As market fundamentals tighten and global economic uneasiness crops up, it should be interesting to see if this trend continues.
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