Manhattan Office Bubble Fizzles without Big Chinese Buyers

Jon Blogosphere, Market Commentary, Real Estate

Sales volume in Q3 plunges 67% from a year ago.
Manhattan, the biggest most expensive trophy market in the US for commercial real estate, used to be particularly appealing to exuberant foreign investors, such as Chinese conglomerates. But in the third quarter, sales volume of large office properties (minimum $5 million and 50,000 sq. ft.) plunged 67% year-over-year to $991 million, the lowest in five years. It was down 90% from the peak in Q1 2015.
‘Q3 2017 might signal a return to normalcy for the highly sought-after Manhattan market,’ the report by Yardi Systems’ Commercial Cafcommented.
This chart shows the dollar sales volume of large office properties. The $991 million in Q3 is rounded up to $1 billion:

This post was published at Wolf Street on Oct 23, 2017.