After a less than stellar 2022 for the New York City real estate market, the new year isn’t expected to bring much relief for landlords.
An economic slowdown, rising interest rates and remote work will continue to weaken office leasing and are expected to cause the value of real estate sales to drop 15.9 percent from fiscal year 2022 to fiscal year 2023, according to a report from the New York City Independent Budget Office (IBO). A 15.9 percent drop would lower the value of New York real estate sales to $101 billion.
Commercial real estate sales are anticipated to decline 12.8 percent in that time, while residential sales will likely decrease 18 percent, according to the report.
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