By: Jonathan Kohan
For the first-time New York, has fallen behind both Dallas and Los Angeles in commercial sales. In New York, commercial real estate sales have declined by over 56% when comparing this fiscal quarter to the same fiscal quarter in 2016. The sales of New York commercial properties dropped to 14.1 billion, whereas real estate investment in both Dallas and Los Angeles equated to 15.1 billion and 21.2 billion respectively. This is a big national shock as New York is consistently ranked as the number one area for real estate investment. Overall, this has significant importance nationally as commercial property sales overall have decreased by 9% from 2016. This suggests that we as a nation are shifting from the hyper-supply aspect to recession aspect of the real estate cycle. This is backed by the notion that Real-estate industry participants in New York state that the slowdown is being caused by the extremely high values that have been reached after the lengthy bull market that has been occurring. Both buyers and sellers seem to be disagreeing on price values thus causing a stalemate. Many individuals believe that there will be a continuous slowdown until one side is forced to crack.
Sources: Grant, Peter. “New York Falls Behind Dallas and Los Angeles in Commercial Property Sales.”The Wall Street Journal, Dow Jones & Company, 24 Oct. 2017, www.wsj.com/articles/new-york-falls-behind-dallas-and-los-angeles-in-commercial-property-sales-1508884185.