New York’s Office Market Gets Crushed, Bubble Deflates

Jon Blogosphere, Economy, Market Commentary

Where the heck is the Foreign Money when you need it?
The market for office buildings in one of the hottest and most overheated real-estate markets in the world, New York City, just went into the deep-freeze. If you see the word ‘plunge’ a lot below, it’s because that’s what happened in the first quarter of 2017.
It was exactly what no one in the industry needed. Sales of large office properties (those with over 50,000 square feet) that closed in Q1 2017 plunged 63% from $5.54 billion in Q1 2016 to $2.1 billion. It was the lowest transaction amount in any quarter since Q1 2013.
According to Commercial Caf, which analyzed data from Yardi Matrix and PropertyShark, that $2.1 billion in Q1 office sales, in total 10 deals, was down an ear-ringing 80% from the $10.3 billion, and 26 deals in Q1 2015.
This chart shows the plunge in billion dollars:

This post was published at Wolf Street by Wolf Richter ‘ Apr 12, 2017.