Joshua “Josh” Weisfeld is an asset manager with W. Brothers Realty, LLC, in New York City. As a real estate professional, Joshua Weisfeld emphasizes the sale, purchase, and rental markets of commercial real estate in Manhattan.
Research indicates that the fall of real estate prices in Manhattan was greater than any other American market in 2020. While the impact of the COVID-19 pandemic has been minimal in many real estate markets, select regions and asset classes have been hit hard.
According to the Real Capital Analytics US National All Property Index, 2020 actually saw 7.8 percent growth in nationwide real estate transactions, despite a stagnant stretch during the middle of the year. Certain industries and assets enjoyed even more growth, such as industrial (8.8 percent) and multi-family (8.3 percent) properties. On the other hand, prices for office space rose only 1.5 percent, while retail prices dropped by 4.5 percent from 2019.
New York City is a prime example of the varied effects of the coronavirus throughout 2020. Numerous city suburbs enjoyed increased property values, while several boroughs saw minor declines. Manhattan, however, was hit hard, posting a 5.1 percent decline through Q3. The area hit a 10-year low in property liquidity, despite trailing only Paris and Berlin in that regard.
An effective vaccine roll out offers some hope for the market prices in 2021 and beyond, though financial pressures yielding a glut of distressed asset sales could spell more complex, long-term troubles for the market.
