In the first half of 2020, investment sales in New York City totaled $10.5 billion, down 54 percent compared to the first half of 2019, according to the Real Estate Board of New York (REBNY)’s 2020 Biannual Investment Sales Report. These figures both represent all-time lows since REBNY’s reporting began back in 2015.
The total number of investment sales transactions declined 32 percent year-over-year, to 1,229 transactions. The total sales volume declined 54 percent year-over-year to $10.5 billion. Overall, the sales volume of multifamily rental properties declined 50 percent and transactions declined 29 percent compared to the first half of 2019.
According to the report, the total tax revenue for the city and state generated from investment sales was $314 million, with $62 million in NYS transfer tax and $252 million in NYC transfer tax. Total tax revenue in the first half of 2020 represents a 49 percent decrease from the previous six months and a 58 percent decrease from the previous twelve months.
“We continue to see the devastating and long-lasting impacts the pandemic has had on the health and stability of the New York economy,” said REBNY President James Whelan. “Real estate is a fundamental driver of the city’s economy and it’s essential to New York’s recovery that the industry bounce back. We will continue to advocate for federal aid that addresses the needs of both the real estate industry and New York’s overall economic health.”
Key findings from the report include:
– Citywide office sales volume declined 47 percent year-over-year to $3.6 billion. Total transactions declined 31 percent year-over-year to a total of 124 in the first half of 2020. The average price was $40.4 million representing a 28 percent decline year-over-year.
– Multifamily rental properties sales volume citywide declined 51 percent year-over-year totaling $2 billion. Transactions declined 29 percent year-over-year to a total of 465 in the first half of 2020 with an average price of 17 million. This represents a drop in average price of 50 percent year-over-year.
– Citywide, hotel sales volume declined 81 percent year-over-year to $294 million. Total transactions declined 70 percent year-over-year to a total of 6 in the first half of 2020 with an average price of $48,992,413. This represents a drop in average price of 37 percent year-over-year.
– Retail sales volume citywide declined 27 percent year-over-year totaling $2 billion. Transactions declined 27 percent year-over-year to a total of 199 in the first half of 2020 with an average price of $10 million. Year-over-year, the average price remained flat.
“This analysis illustrates the continued challenges the city and industry face on the road toward recovery and the critical need for smart, forward-thinking policies at both a local and state level,” Whelan said. “If we are going to come back a stronger city, we need solutions that will address the pressure points we’re experiencing.”