Analysis

New York City commercial property sales plunge to 2009 lows

Commercial property sales cratered in New York City. And it won't stop there.

Painful consequences for city tax collections

The Volume of Commercial Property Sales in New York City Cratered in the second quarter and the trend will likely accelerate.

Investors purchased only 170 properties valued at $3.6 billion between April 1 and the end of June, the lowest number of transactions for a three-month period since the second quarter of 2009, according to B6 Real Estate Advisors. There were 523 deals valued at $7.6 billion in the second quarter of 2019, said the firm, which specializes in New York commercial property sales.

“Here you see a cliff,” said Adrian Mercado, B6 Real Estate chief information officer. 

“The decline in value is the bigger issue for the city to face,” said Mr. Massey, who ran for mayor in 2017. “We could be talking about billions of dollars in unanticipated shortfall.”

Not just New York

  • More people than ever are working at home.
  • With social distancing requirements, it's hard to squeeze into elevators.
  • Department stores are in a world or hurt and the trend is unmistakable. Online shopping is killing malls. 

Not just commercial

That pair of Tweet pertains to residential property, not commercial. That amplifies the concern.

Unemployment is much worse than it looks

With continued claims hovering near 20 million and perhaps another 10 million collecting PUA, there between 20 million and 30 million people who are going to be in a word of hurt as soon as assistance ends. 

They will not be going to the office nor will they be buying real estate.

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