Liquidity persists for sub-$250 million office sales in Manhattan
While demand has shifted towards smaller-ticket deals, larger deals have become more challenging to execute.
October 30, 2019
- The share of $250 million and below office sales has remained steady based on the higher-yielding profile of these transactions that have regained favor in the current investment environment
- While demand has shifted towards smaller-ticket deals, larger deals have become more challenging to execute given fluid debt market conditions and the potential need for multiple equity partners
- Sub-$250 million office dollar volume is on pace to finish the current year 34.8 percent below the 2016 total, while sales above $250 million are on pace for a 49.9 percent decrease over the same period
- When excluding the anomalous $2.2 billion sale-leaseback of the Time Warner condominium at 30 Hudson Yards, the year-to-date share of sub-$250 million transactions swells to 38.5 percent, the highest share in seven years.
Source: JLL Research