Market Indications Paint Optimistic Outlook for 2021 Investment Sales Volume

Investment sales volume during the 1st quarter of 2021 fell to a cyclical low of $1.2 billion, which if the pace of activity holds steady, will reach an annualized volume for the year of just $4.8 billion. However, it is projected that the volume of sales will pick up significantly over the balance of the year due to positive market indications. Two cited factors that will fuel much of the uptick—prices have dropped to the point that acquisitions are very compelling; and New York City cap rates on properties are higher relative to around the U.S., motivating what may be in some instances domestic buyers that for the first time are taking a look at the city’s assets, and also helping to continue the flow of foreign capital into New York City.