Market Stats Indicate Strong Growth in Outer Boroughs Office Market

In an attempt to do something new I grabbed some numbers from the Real Capital Analytics site and tried to make my own report of market trends instead of downloading other people's material. This is what I could find (not being a paying client):



First, the sales volume numbers for the New York Metropolitan area office market indicate that sales volume for newly offered properties (in which I made the assumption that this meant newly constructed properties) is declining, with newly offered property sales volumes being 68.9% of the volume sales volume of closed properties (which I took to mean properties that had already been sold). A notable exception is the outer boroughs of New York City with newly offered property sales volumes at an astonishing 292.9% of the sales volume of closed properties. Northern New Jersey's sales volume was stable with newly offered properties at 96% of the sales volume of closed properties.



There has also been a general decline in the number of properties sold in all markets except, once again, the outer boroughs of New York City, which saw the number of newly offered properties sold at 200% of closed properties and interestingly, Stamford, Connecticut, where 20% more newly offered properties were sold despite sales volumes of newly offered properties at 17.8% of the sales volume of closed properties.



Average prices showed a general upward trend, most notably in Manhattan, which saw prices for newly offered properties at 159.8% of prices for closed properties. Notable price declines were seen in Westchester, with prices for newly offered properties at 15% of prices for closed properties and Stamford, Connecticut with prices for newly offered properties at 14.8% of prices for closed properties.



The data confirms the tightening of the office market in the New York metropolitan area and in Manhattan in particular, as described in reports from around the industry. The trend towards expansion into the suburbs is also indicated through lower sales volumes for newly offered properties in most markets except in the outer boroughs of New York City, where well known construction projects are taking place with sales of space probably outpacing construction. The relative stabilization of sales volume and prices in Northern New Jersey indicate that space is being sold at about the same rate that it is being offered to the market. Meanwhile, steep declines in Westchester and Stamford, Connecticut likely reveal office space that has been occupied with little new space being constructed and/or offered to the market at the moment.