New York City’s commercial real estate market continues its upward trend in 2011, growing by 32% over 2011 and by a whopping 193% over its recessionary low-point in 2009. In real terms, the commercial sector amounted to $24 billion in sales, a four-year best.
Even though sales were consistent throughout the whole year, the peak was in Q3 of 2011, when transactions amounted to $9.37 billion. This total hadn’t been reached in a single quarter since 2007.
Large transactions of $5M or more were the main contributors to the revitalization of the commercial sector. They accounted for $20.8 billion or 86% of all commercial sales in New York City. The top 10 biggest commercial transactions amounted to $5.76 billion, which brought the Y-o-Y increase to 35% over 2010 and to 245% over 2009 for the $5M and up sector.
The median sale price for the $5M and up segment also reached a 7-year high at $11,719,595. This represents a 24% increase over 2010 and a 19% increase over 2007 (the market was at its peak in 2007, with close to $45 billion in total sales).
More than half of NYC’s commercial real estate market volume is represented by office building sales. In 2011, the office market recorded $13.4 billion in sales, a 38% Y-o-Y increase. It clearly outperformed the multifamily sector which, with $6.9 billion in sales, witnessed a 14% Y-o-Y increase.
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