By Amanda Fung | Crain’s New York Business
$930 million total value is a whopping 64% below the 2006 peak of $2.6 billion; good news is that the sales volume is expected to pick up during the second half of this year.
Sales of industrial properties plummeted to a six year low last year, according to a new report.
Last year, sales of such buildings across the five boroughs dropped 45% to a total value of $930 million, according to brokerage CPEX Real Estate Services’ New York City 2010 Investment Sales Study, which was released this week. That level marks a 64% drop from the peak year of 2006, when industrial sales hit $2.6 billion. Since then, sales have fallen annually, as they did in 2009 when the value of industrial properties sold fell 15.6% from the previous year.
While overall dollar volumes have been slipping steadily, that is not the case for the price paid per square foot for such properties. In fact, the average price per square foot increased each year from 2004 to 2008. In 2004, the average stood at around $200 per square foot and it notched upwards every year until last year when it dipped 15.6% from 2008 to roughly $250 per square foot.
Read full article here.