(Bloomberg) — Deals for a piece of New York’s iconic skyline are drying up.
About $14 billion of commercial real estate changed hands in the biggest U.S. property market in the first three months of the year, the lowest tally since the third quarter of 2014, data from Cushman & Wakefield Inc. show. Sales of office towers, hotels, stores and other buildings are forecast to drop as much as 30% this year in Manhattan and the surrounding boroughs after a record $75.5 billion of deals in 2015, according to the brokerage.
Evidence is piling up that six years of record-shattering price growth for U.S. commercial real estate is hitting a wall. Buyers and sellers in Manhattan, a magnet for property investors from around the world, are sitting out deals as the slump in oil prices, China’s slowing economy, an uptick in borrowing costs and a volatile stock market give landlords pause.
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