In Manhattan, the volume of real estate deals halved last year. The first consequences of the home office trend can also be seen in other US metropolises.
The trend towards mobile working even after the lockdown is having an impact on the office property markets in US metropolises. In New York and San Francisco, for example, only a few prestigious office towers have changed hands in recent months. In Manhattan, the volume of office real estate deals more than halved last year to 5.4 billion dollars (4.5 billion euros), as the commercial real estate consultant Cushman & Wakefield has calculated.
In the first three months of 2021, it was just under $ 42 million. “Prices in business metropolises like New York and San Francisco are slacking,” said Mark Zandi, chief economist at Moody’s Analytics. These big cities are the figureheads of the industry.
According to estimates by LaSalle Investment Management, institutional investors have invested a total of around $ 231 billion in office properties in New York, compared with $ 128 billion in San Francisco. Even if lettings have recently picked up again, according to experts, lower rents and higher vacancy rates are putting pressure on the sales prices of commercial properties. Bank Morgan Stanley expects that opportunities for mobile work and the resulting alternating use of desks (“desk sharing”) will reduce total office space in the US by 13 percent.
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