Snapshots

As Manhattan land/development value expectations align with reality, office projects become more feasible

Demand for office land/development sites has been more resistant to the overall investment sales downturn than other project types; 2019’s total volume of $1.1 billion was just 12.5 percent below the prior five-year average, while non-office projects declined 65.2 percent

February 10, 2020
  • Pricing across the wider land/development sector has been elevated for the last five years but began a downwards correction in 2019 as sellers began to capitulate on heightened expectations
  • These amended values could encourage more office development and redevelopment projects as underwriting assumptions become more defensible
  • Based on a total of 2.8 million buildable square feet of land/development sites that are either under contract or actively being marketed for sale in Manhattan, a rejuvenated office pipeline could already be underway

 

Source: JLL Research