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  • Writer: Will Pastons
    Will Pastons
  • Oct 25, 2023
  • 2 min read

A prevalent and unifying trend has emerged in the industrial markets of Greater Los Angeles & Long Beach, Orange County, and the Inland Empire during the third quarter of 2023: an uptick in vacancy rates. This development has undoubtedly captured the attention of real estate observers, raising questions about the resilience of these markets amidst evolving economic conditions.





While it's true that asking lease rates and sale prices have moderated from their previous peaks, they continue to hover at historically elevated levels. This is particularly noteworthy in the realm of leasing, where the prevailing rates are higher than what has been observed in the past. The apparent contrast between increased vacancies and persistent high asking rates creates an intriguing narrative within these markets.


The question that naturally arises is whether this shift in vacancy rates is a direct consequence of the recent Federal Reserve interest rate hikes or if it's a temporary slowdown in the market's momentum. The answer to this query remains somewhat elusive, and much like the economic outlook itself, it is subject to ongoing observation and analysis.


One plausible hypothesis is that the impact of the Federal Reserve's interest rate hikes has yet to fully materialize. These hikes may have prompted businesses and investors to reevaluate their strategies, potentially leading to a pause in leasing and purchasing activities. The full ramifications of such monetary policy decisions often take time to ripple through the Industrial Real Estate sector.


On the other hand, it is equally plausible that the observed increase in vacancy rates is a transient phenomenon. Industrial markets are influenced by a myriad of factors, including supply and demand dynamics, economic cycles, and regional conditions. Short-term fluctuations are not uncommon, and they may not necessarily indicate a fundamental shift in the health of these markets.


As we move forward, close monitoring and analysis of these markets will be essential to provide a more definitive answer. Factors such as employment trends, trade activity, and consumer behavior will play a pivotal role in shaping the trajectory of these industrial markets. Whether the current situation is a harbinger of sustained change or a brief pause in the continued growth of these markets will be revealed in the coming quarters, offering valuable insights into the ever-evolving real estate landscape.


 
 
 

The Manhattan real estate market exhibited significant fluctuations in September 2023, according to the latest market data. These changes encompassed shifts in median sale prices, price per square foot, and transaction volumes, reflecting a dynamic and evolving real estate landscape in the city.





1. Median Sale Price: Down 11.4% YoY

September 2023 witnessed a median sale price of $975,000 for Manhattan homes, showcasing an 11.4% year-over-year decline. This substantial drop underscores the evolving market conditions, potentially influenced by various economic factors affecting buyer behavior.


2. Median Price/Sqft: 2.5% YoY Decrease

The median price per square foot in Manhattan for the same month registered at $1,344, indicating a 2.5% year-over-year decrease. This metric highlights the softening of property values per square foot, contributing to the overall decline in median prices.


3. Transaction Volume Soars by 66.1% YoY

September 2023 witnessed an impressive surge in real estate transactions in Manhattan, totaling 2,521 properties changing hands. This represents a remarkable 66.1% growth compared to the same month the previous year. The heightened transaction volume suggests robust market activity, possibly driven by increased demand and favorable financing conditions.


4. Comparison with New York City

In comparison to the broader New York City real estate market, Manhattan maintained a higher median sale price at $975,000, while New York City's median was $680,000 for September 2023. Both markets experienced declines in median prices, with Manhattan's year-over-year change at -11.4% and New York City's at -9%, with Manhattan's decline being more pronounced.


The Manhattan real estate market is dynamic and influenced by factors such as economic conditions, changing buyer preferences, and evolving market dynamics. Owners must closely monitor and adapt to these trends. Buyers, sellers, and real estate professionals should take these factors into account when making decisions, as they will continue to shape the future of Manhattan's real estate market. Broadway Realty is a leading real estate advisory firm with expertise in luxury sales market. Our seasoned professional Alexander Bogod possess a deep understanding of the local market, providing invaluable insights and guidance to clients navigating the ever-changing real estate landscape in Manhattan.


Disclaimer: This press release is based on data available as of September 2023 and is intended for informational purposes only. Actual market conditions may vary, and individuals should consult with real estate professionals for specific advice and investment decisions.


For media inquiries, please contact:

Broadway Realty

Call: 212 577-2270

 
 
 
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