Metro Volume and Pricing
Single property New York office investment sales were moderate in the second quarter of 2012 according to Reis, with 24 deals for $1.94 billion.* A total of 23.1 million square feet has changed hands over the past four quarters, a slowdown from the pace recorded earlier. The mean price for second quarter sales was $438 psf, down from the mean of $502 psf the quarter before. But the quarter’s largest sale had a price of $787 psf. The Moinian Group sold a 495,720-square-foot building on Fifth Avenue for $390 million in the eighth biggest sale by dollar value in the past four quarters. Crown Acquisitions was the buyer.
Midtown South held the top spot for dollar value sold over the past four quarters at $3,560 million, and Downtown led in square footage sold at 7.8 million square feet. The highest average price for sales over the past four quarters was $883 psf in the Plaza submarket.
Cap Rate Comparisons and Forecasts
The mean cap rate for the second quarter was 8.3%, up 240 basis points from the prior quarter and the highest Reis has recorded here in a database going back to 2005. The mean cap rate for sales in the U.S. and Northeast Region also increased during the quarter, according to Reis data. The rolling 12 month mean for New York was pulled up 90 basis points to 6.5%, an unusually large jump for this “smoothed” measure. Reis predicts little change in the rolling 12 month mean through 2016.