NNN Lease Market News
Institutional Investors and Real Estate Investment Trusts Really Back in the Market
Demand for prime properties is rising as Manhattan office leasing improves and buyers seek to put capital to work. Institutional investors and real estate investment trusts led purchases, making almost two-thirds of deals in the first six months of the year, according to Cushman.
“The institutions and pension funds are really back in the market in a big way,” Joseph Harbert, Cushman’s New York-area chief operating officer, said in a briefing for reporters.
“The smart REIT money got active in the market in ’10, and is still very active. The foreign money as a percentage now is not as active.”
Properties priced at $100 million or more are “selling at a very brisk pace” and driving the market while lower-end sales are more sluggish, according to Robert Knakal, chairman of commercial-property brokerage Massey Knakal Real Estate Services, which also issued a report today on Manhattan sales.
The average deal price for the first half of the year was $13.1 million, higher than the $12.3 million reached at the market’s peak in 2007.The high end is recovering, but otherwise the market is kind of slogging along,” Knakal said. “It is taking longer to gain the traction that we like.”
http://www.bloomberg.com/
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