New York's market for commercial properties appears to be on an upswing in 2018. Real estate transactions involving properties such as development sites, apartment buildings and office towers increased to more than $12 billion during the year's first quarter. That is a 70 percent hike from this same time last year.
Commercial real estate transaction sales in Manhattan doubled, reaching $8.9 billion. The transaction that helped these numbers was Google's purchase of New York's Chelsea Market building. The tech giant purchased this property for $2.4 billion.
However, other major deals also contributed to the increase in sales this year over last year. These other deals include the purchase of more than three acres for $700 million. In addition, many more deals are in the works. For instance, Pfizer Inc. is planning to sell the company headquarters to an investor for around $360 million. Sales are expected to keep increasing this year compared with last year's sales figures.
Commercial real estate transactions can understandably be complicated, especially for those who have never engaged in them. Even those who have completed these types of transactions in the past may become stumped by current ones, as not all transactions are alike. Making a mistake during the sale or purchase of commercial real estate may unfortunately be costly -- a frightening prospect considering that a large sum of money is usually on the line. Fortunately, a real estate attorney can provide the guidance needed to ensure that the client's best interests and rights are protected as he or she navigates deals in New York's competitive commercial property market.
Source: wsj.com, "New York's Commercial Property Market Comes Storming Back", Keiko Morris, April 16, 2018