New York Commercial Property Report

Manhattan tops in multi family transactions in 2010
According to Ariel Property Advisors, Manhattan was New York City's most active borough in multi family transactions in 2010.  Total transactions totaled $2.1 billion spread across 170 buildings with an average price of $440 per square foot.  Second was Brooklyn with 99 trades totaling $360 million.

New York Commercial Property Yield

Commercial property yield in New York (Manhattan) is driven by price point.  The lower price point properties, less than $20 million, generally have an asking price at a 5 percent yield.   

The higher price point commercial properties, more than $30 million, would have a higher yield , perhaps 8 percent or more.  Reason is that at a higher price point, there are fewer players  which decreases demand.  Also, buyers at the higher price point are often institutions that put a lot more pressure on sellers from a pricing perspective.

The value of commercial property is driven by yield.  Similar to a stock's PE ratio.  The more the landlord can obtain in rent, the higher the value because a set multiple, in this case rental yield, would be applied.

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Visit our website http://www.castle-avenue.com/ to learn more about buying New York commercial or residential investment property. We focus on local, overseas and international investment property clients.

Wei Min Tan is a real estate broker and investor focused on investment property in Manhattan, New York. He can be reached at tan@castle-avenue.com

Cantonese Chinese speaking agent, Manhattan New York condo

I am a Cantonese Chinese speaking property agent in Manhattan, New York serving foreign and international investment property buyers.  Our clients include investors from Hong Kong, Singapore, China and Malaysia.

Our clients usually purchase investment condos in new developments in Manhattan because Manhattan has shown to be an asset that sustains its value, despite the current recession.  For example, Manhattan prices decreased by about 20 percent during the current recession.  This decline is much lower than the declines at similar major cities such as Los Angeles and San Francisco where prices declined by 40 to 50 percent.  Manhattan prices are also more stable relative to stocks where in 2008, prices declined by 40 percent.

Manhattan #2 in nation for distressed commercial property

Manhattan #2 in distressed commercial real estate.

1.  Las Vegas $17.7 billion in commercial properties that are in default, delinquent, foreclosed.
2.  Manhattan $12.3 billion
3.  Miami $7.6 billion

As reported by the Real Deal.  Data by Real Capital Analytics.