RCA Insights

Chart: Boston Overtakes Manhattan as Most Liquid US Market

By on June 28th, 2021

For the past two quarters, Boston has ranked as the most liquid commercial property market in the U.S., bumping Manhattan into second place, according to the RCA Capital Liquidity Scores. In the chart below we illustrate how Boston has usurped Manhattan, showing the six inputs which are weighted to calculate the overall scores.

–For Boston, the component of unique, active buyers has slipped only slightly in the past four quarters, while for Manhattan this input has been falling since the end of 2019, dropping at an accelerated pace over the past two quarters.

Boston vs. Manhattan liquidity breakdown Q1'20 and Q1'21

–Boston’s score for investment volume has barely budged during the pandemic era, ranking behind only Dallas. Manhattan’s score for investment volume has dropped by 4%.

–Manhattan’s share of institutional investor volume has declined steadily since the start of 2019, though most institutional investors never could buy assets in pricey Manhattan. Boston’s share has dipped marginally.

Also read: Depth of Buyer Pools in Leading Global Markets

–Manhattan’s share of global marketmaker volume and zone marketmaker volume is currently at the lowest ebb since the inception of the liquidity scores in 2008. Boston’s score has been little changed over the past four quarters.

–The cross-border share component has worked in Manhattan’s favor in recent quarters. While it has fallen marginally since the latter half of 2017, Manhattan still has strong cross-border presence relative to most markets.

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© Real Capital Analytics

The RCA Capital Liquidity Scores® are calculated using a combination of absolute and relative measures. The absolute measures are transaction volume and count of unique buyers. The relative measures are shares of: global cross-border investment; zone market maker investment; global market maker investment; and, institutional investment.

To learn more about RCA Capital Liquidity Scores and how this data can help inform your investment decisions, contact us. Clients <<click here>> to access the latest RCA Capital Liquidity Scores report.