News & Press
Buy High, Sell Low: Building Sales Slump Despite Deep Discounts
The value of city buildings is sinking under the weight of high interest rates, crippling regulations and large vacancies caused by work-from-home and pandemic downsizing. Many properties are now worth no more than their debt, and they’re still not selling. According to the Real Estate Board of New York, sales in 2023 were the lowest since 2009.
“Most buildings are worth less now than a year ago, if only by virtue of the increase in cap rates and interest rates,” said Michael Cohen of Williams Equities. Moreover, trillions of dollars in debt will soon come due, warned Rob Gilman, CPA and Leader of Anchin’s Real Estate group.
