The number of residentially-zoned development site sales above $5 million throughout New York City increased to 20 in the fourth quarter, up 11 percent from 18 transactions from the previous quarter, according to the Avison Young Fourth Quarter 2019 Development Sites Sales Report.

The 20 transactions amounted to over $593 million and over 2 million buildable square feet, with land prices throughout the boroughs staying mostly consistent with activity seen earlier in the year. Even with the 4^th quarter bump, development activity for the year dipped to near 10-year lows, with dollar volume dropping around 65 percent off the 10-year average.

“Despite the dip in 2019 activity, the city’s population growth and strong job market have allowed for a healthy number of new construction projects,” said Daniel Tropp, a Director in Avison Young’s Tri-State Investment Sales Group and author of the report. “Thecurrent financing environment and the changes to the QOZ program will also have positive impacts on the market.”

A YIMBY New Construction Report shows that total units filed citywide increased to 36,467, a jump of 2,428 or 7.1 percent from last year’s levels. In addition, a recent change to the Opportunity Zone program extends the construction period for Qualified Opportunity Zone (QOZ) projects from 31 months to 62 months.

The report highlights activity within the following boroughs:

Manhattan:

In Manhattan, just three sites traded for an average price per BSF of $686. However those three trades tallied over $266 million and accounted for 45 percent of the city’s total dollar volume by borough.

Northern Manhattan:

Northern Manhattan had a small sample size of development site trades in the first three quarters of 2019 but witnessed six transactions in 4Q, averaging $320 per BSF. Four of those sites were located in Opportunity Zones and averaged $283 per BSF, the highest OZ average of any submarket.

Brooklyn:

In Brooklyn, seven sites transacted at an average price per BSF of $277 in 4Q19, marking a 10 percent decrease in value from an average price per BSF of $308 in 3Q19. Three of the 4Q19 trades were sites located in QOZs which, if isolated, traded at approximately $164 per BSF. Brooklyn’s seven trades were the most of any borough, accounting for 35 percent of the city’s number of sales by borough.

Queens:

In Queens, the average price per BSF was $245 in 4Q19, exhibiting a 12 percent decrease in value from an average price of $279 per BSF in 3Q19. None of the 4Q19 trades were QOZ sites.

Bronx:

There were two development sales in the Bronx in 4Q19, averaging $87 per BSF and accounting for over 465K of BSF, or 22 percent of the city’s total BSF that traded.

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 120 offices in 20 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.