July 13, 2018
Notwithstanding the challenges posed by economic and financial impacts, Avison Young remains optimistic about the future for Manhattan’s real estate market. The firm previewed the findings of its second-quarter report at a media briefing earlier this week, during which tri-state president Arthur Mirante (pictured, at left) interviewed RXR Realty’s Scott Rechler (at right).
Looking at Manhattan’s office market, Avison Young notes Q2 leasing volume that was 25% above the five-year quarterly average. “Across the markets, some sizable occupiers have committed to take on new and more modern space,” the report states. “At the same time, we have observed rising vacancies during the quarter, particularly within Midtown South and Downtown.”
On the investment sales front, cap rates hover below 4% in some instances, while values remain at or near all-time highs. This has cut into sales velocity and AY notes that “it is too early to tell if volumes will resume.”