The real estate wonks at Cushman & Wakefield have said it, so it must be true: the market is contracting.
Egad(!) is right.
C&W’s "First Quarter 2008 New York Capital Markets Group Manhattan Market Overview" makes the following sobering conclusions:
- There was a pathetic $5.1 billion worth of activity in the first quarter of ’08, compared to $28.3 billion the same time last year.
- Of that so-called "activity," 58 percent was office space, and 10 percent multi-family.
- Foreign investors are responsible for 45 percent of the sales volume.
- The development pipeline is "very limited," with "most projects on hold."
- And, as we all know, "Debt crisis has led to increased spreads and more conservative lending parameters."
- Most investment sales (66 percent worth) occurred in Midtown, with 26 percent in Midtown South, and 8 percent Downtown.