New York City seemed to track with the rest of the US. With a 25 percent drop in dollar volume, New York City posted $57.8 billion in sales, but still the 4th highest performance in New York City investment sales. Land contributed greatly to the downfall with a 75 percent in dollar volume decline in Manhattan. Surprisingly, citywide pricing rose to the highest level ever at $534 per square foot across all property types, a 9 percent increase; while cap rates compressed to an all-time low of 4.16 percent. This is a result of owners not selling because they were not achieving the pricing level they sought, an effect we saw in 2009 as well.
With this froth in the market, it is now more important than ever to pick your spots. Here are some tips for success:
