Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 11 July 2018

Manhattan Office Sales Decline to $2.8Bln in 2nd Quarter

Investment-sales transactions involving office properties in Manhattan declined by 25 percent in the second quarter when compared to the same period a year ago. The continued disconnect between seller and buyer pricing expectations was to blame, as was a hefty pipeline of new construction, which has dampened buyer interest.

Commercial Real Estate Direct Staff Report

Sales of Manhattan office properties declined by 25 percent in the second quarter to $2.8 billion when compared with the same period a year ago, according to Yardi Matrix.

The Santa Barbara, Calif., real estate software and research company attributed the decline to the continuing gulf between the values property owners place on their properties and the prices prospective investors are willing to pay. Investors are concerned that interest rates are sure to climb, prompting them to increase their yield requirements, dictating discounted offers.

Meanwhile, investors are concerned that the abundance of new space coming online could impact fundamentals, which has contributed to the chill in the market.

Yardi noted that 13 office properties with 4.7 million sf are expected to open in Manhattan this year. That includes the 1.4 million sf at 55 Hudson Yards and the 1.1 million sf at 375 Pearl St. While tenant and investor demand are expected to be impacted, Yardi expects the softening to be short-lived.

"It might dampen sales for a quarter or two… but I think there'll be a small resurgence (in property sales) next year," said Doug Ressler, director of business intelligence at Yardi.

The $2.8 billion of sales transactions that...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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