Wednesday, August 19, 2009

Manhattan Office Sales Ground to Halt in First Half

The scarcity of property sales has made it hard to calculate prices and yields, the broker said.

The so-called capitalization rate, or a property's net operating income divided by purchase price, may have risen to about 7 percent for stable, prime Manhattan office buildings, CB Richard Ellis said.

During the peak, cap rates in Manhattan got as low as about 3 percent. Actual cap rates vary by property.