What Time Is It? (We Mean Now)

One question on everyone’s mind these days is where we are in the investment sales market cycle in New York City.

There is a significant divergence of opinion on this topic. The most popular perspective is that we are in the late stages of the cycle. Some feel we are at the very end of the cycle. And an even smaller percentage believe the opinion I have expressed in these pages, which is that the old game is over and we are in the early stages of an entirely new cycle.

Today, we take a look at this issue, and I will present some information from which you can draw your own conclusions.

The Great Recession began to take hold in late 2007, causing significant disruption in the market. In 2008 and 2009 the volume of sales in New York, both from a dollar and number-of-properties-sold perspective, dropped extraordinarily. By 2009, the number of properties sold had fallen by 76 percent, and the dollar volume had dropped by an astounding 90 percent. As is typically the case, values didn’t bottom out until 2010, during which volumes began to rise.

Click here to read the full article on CommercialObserver.com