It seems clear from all the evidence and reports, that there has been a huge increase in the sale of office buildings this year in certain areas of New York. Last year, sales reached $1.8bn. But this year it went up to $5.7bn in the Midtown West area (which is the area between 30 to 59th Street, and Fifth Avenue to the Hudson River).
According to the Eastern Consolidated MetroGrid Report for Midtown West, even though New York City over the last decade has witnessed significant development, in more recent times, there has been a substantial building progression in the Midtown West area. There are now a further 35 new residential properties, 30 new hotels, 14 new office buildings, 10 new retail buildings and one new industrial property.
Property Price Increases
Apart from the fact that there are so many more properties being constructed and sold in the area, prices have also significantly risen. First, in 2010, only three hotels were sold but this year, that figure more than doubled to seven. Second, sales of hotel buildings were $425m last year, but this year that figure has increased to $1bn. From 2008 that price has really escalated since figures three years ago had plummeted to as low as $175m.
Midtown West Office Building Data
Taking a look at office building sales in the Midtown West area, there has been another significant increase. In the second quarter of this year, 25 sales were made. In the entire year of 2010, 27 sales were made. So the figure for this year is almost quadruple of last. Prices however, have been somewhat in flux. For four years, ago a drop was witnessed of less than $400 for a square foot, but today that figure stands at $435. Yet in 2007, the figure had reached $500 for the same space.