Q3 Investment Sales Volume Indicates Manhattan’s Recovery Has Yet to Reach the Goal Line
Despite disappointing sales volume in the 3rd quarter of 2021, optimism about the future of the market is high. Both dollar volume of transactions over $10 million and transaction volume lowered to $2.7 billion and 36 sales respectively. While dollar volume for the overall market is on pace to reach $9.6 billion for the year — which would be a cyclical low and a 14% drop year-over-year, the number of sold transactions is on pace to reach 136 per year, representing a 31% increase during the same period. Other reasons for optimism heading into the 4th quarter include what appears to be a faster recovery of the residential market than was anticipated; growing tourism volume as international travel opens up and the positive impact on the hotel market; values in the land market are experiencing upward pressure; and robust contract execution activity, which is not showing any signs of slowing.