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New York City property market turns cautious

Staff Writer |
Prospects for New York City’s property market remain strong yet greater caution can be seen.

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The survey by the Real Estate Board of New York (REBNY), which polled about 550 brokers, also showed the outlook was more reserved than in the first quarter for commercial leasing, residential rentals and commissions from renting.

While the city’s strong property market has turned cautious, expectations for financing remain high. Yields on 10-year U.S. Treasury notes, a benchmark in commercial real estate, hovered just above 2 percent last week.

The main components of the survey have been positive since 2013, when it began, as New York real estate boomed and the city enjoyed a strong economy with declining unemployment.

Comments from the eight-question survey indicated a market in which buyers were hesitant and sellers were unrealistic on pricing.

Expectations for the commercial leasing market, looking six months ahead, were indexed at 3.78, down 1.01 points since the first quarter, according to REBNY.

The future rental market was indexed at 3.31, a decrease of 0.51 points. Both were four-year lows.

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