Investment sales transactions are picking up in Manhattan. A new report from Avison Young shows investment sales volume totaled 51 transactions with a total value of $1.87 billion in the second quarter. This represents a 59% increase in sales volume and a 49% increase in dollar volume compared to the four quarters during the pandemic.

Multifamily led the deal volume in the second quarter, accounting for 28 of the 51 transactions and representing a total value of $438 million, representing a 100% increase in deal volume and a 19% increase in dollar volume off of the trailing four quarter average. The largest transaction was Stonehenge Partner’s purchase of 920 Park Avenue for $134.5 million or $865 per square foot at a 3% cap rate. During the quarter, the price per square foot increased 4% to $742, and the average cap rate decreased 28 basis points to 4.67%.

While multifamily led in terms of transaction volume, office led in terms of dollar volume. There were five total transactions valued at $854 million. The dollar volume was up 61%, while deal volume increased 33% from the trailing four-quarter average. The price per square foot increased 10% to $1,039.

Retail transactions also saw a substantial increase in the quarter. There were a total of eight retail transactions valued at $253 million, up 78% and 130% from the trailing 4-quarter average, respectively. The price per square foot increased 6% to $1,545. Uniqlo’s purchase of 546-548 Broadway for $180 million was the largest retail deal for the quarter.

Development transactions on the other hand decreased in the quarter with a total of five transactions valued at $272 million, representing a 13% decrease in volume and an 113% increase in dollar amount from the trailing 4-quarter average, respectively. Price per square foot was up 9% to $434.

Other sectors have also seen an uptick in activity. Life science, for example, has become a hot market, thanks to a city-led program to fuel investment in the market segment. Mayor de Blasio and the New York City Economic Development Corporation launched LifeSci NYC, a program to establish the city as a leading life science market, with an initial investment of $500 million. This week, the city announced that it would increase its investment to $1 billion. The city will make this investment over the next decade, and the initiative is expected to generate 40,000 jobs.