Commercial property deals in the Manhattan area of New York broke a five year record after over 1,000 transactions were made in 2012.
The last record dated back to 2007 which saw 999 properties exchanging hands. But 2012 smashed that out of the water with 1,148 transactions.
The main transactions were on the east side around 96th Street and the west side just below 110th Street. But why was 2012 such a good year for commercial deals?
Tax has something to do with it, as an increase was introduced this year. Robert Knakal, who co-founded a brokerage firm, spoke of the implications the tax rise had.
He said: “Tax policies almost always have an impact on what happens in the marketplace. People were rushing to get transactions done.”
Usually 30 to 40 deals are made per month, but in the fourth quarter of 2012 this figure tripled.
Robert continued: “Typically, we sell 30 to 40 buildings in a month. We sold 120 buildings in December.”
The 1,148 transactions totalled a whopping $30.3 billion (£19.2 billion) last year which was mainly fuelled by retail properties in Manhattan. Manhattan is famous for its shopping, so it was no wonder that retail units were the hot favourite for 2012.
Do you think transactions in Manhattan for this year will be another record? Share your thoughts below; we’d love to hear from you.
