The Real Deal / March 25th, 2016
The Real Deal reports: Sales of Manhattan development sites have been sluggish in the first months of 2016. According to Real Capital Analytics (RCA), a commercial real estate data and analytics firm, there was only $90 million worth of development deals in January and zero on record in February.
What’s causing this slowdown? Brokers identify three main factors: the stringent financing markets, debilitating luxury condo sales and the termination of the 421a tax abatement program.
Seller and buyer expectations are not in agreement. Buyers are not willing to pay the high prices sellers are offering. Real Capital Analytics’ senior vice president Jim Costello states that the challenge lies in that fact that owners of development sites have set prices in their heads related to prior transactions.
View the full article in The Real Deal: Sales of Manhattan Development Deals Slow