Investment Sales Tales

No one expected 2023 to end up a banner year for investment sales. But new figures show just how wobbly the market for commercial real estate property was last year. Still, a similarly fresh survey anticipates significantly more activity in 2024, at least for apartment buildings. Check it all out today.

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— Tom Acitelli, Deputy Editor

2023 Was One of the Stalest Years for NYC Investment Sales Thanks to Interest Rates

New York City investors spent much of 2023 keeping their capital to themselves rather than losing it to high interest rates. The city saw $21.6 billion in investment sales last year, a 41 percent decrease in dollar volume compared to 2022 and one of the worst years in the last 10 years, according to an annual sales report by Ariel Property Advisors. Transactions were also down 29 percent year-over-year to 1,904, with the number of buildings sold falling 27 percent, to 2,516 properties, during that same time, the report found. “If you look in the rearview mirror, it’s like leaving a disaster zone,” Shimon Shkury, president of Ariel Property Advisors, told Commercial Observer.

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Brokers Expect 2024 Uptick in Multifamily Investment Sales, Poll Finds

Despite their continued struggles to borrow money, commercial real estate professionals expect a rebound of multifamily sales in 2024 once long-term interest rates stabilize, according to a new survey by Berkadia. The Berkadia 2024 Powerhouse Poll, set to be released Wednesday and obtained by Commercial Observer, shows that 72 percent of investment sales and debt brokers expect stronger year-over-year transaction volume on institutional deals above $50 million. However, not everybody is so confident. Thirteen percent of the 212 professionals polled foresee a weaker 2024 for multifamily sales, and 15 percent forecast no change from 2023.

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