Overall, investors remain attracted to real estate in Manhattan, although many asset classes did struggle. Total sales volume in 2025 came in at $12.05 billion, with transactions amounting to 77. The figures were up seven percent and 13 percent year-over-year, respectively.
In terms of year-over-year performance, office enjoyed the most impressive gains, climbing by 62 percent to $5.7 billion across 67 transactions. Development was the only other sector to post a year-over-year increase, with sales jumping by 33 percent to $2.1 billion on 36 deals.
Retail was hit the hardest, with volume plummeting by 37 percent to $1.4 billion across 71 transactions, followed by multifamily/mixed-use seeing a 35 percent drop to $1.8 billion on 109 deals.
Meanwhile, pricing per square foot told a different story, with all asset classes posting gains. Office recorded the strongest results, with the category increasing by 33 percent to $602. That was followed by multifamily/mixed-use and retail each gaining by 15 percent and development up by 12 percent.
The largest deals by asset class in the fourth quarter included 1334 York Avenue in office, going for $510 million, 346 Madison Avenue, trading for $160 million in development, 425 Seventh Avenue, selling for $30 million in retail and 765 First Avenue getting valued at $33.35 million in multifamily/mixed-use.
"What defines the current market is selectivity," Brandon Polakoff, principal and head of NYC investment sales at Avison Young, said in a statement.
"Capital is moving into properties with strong fundamentals, realistic pricing, and a defined business plan, whether that's stabilized income, long-term institutional ownership, or a conversion or repositioning opportunity."
Avison Young lists a few trends to watch for in Manhattan, heading into 2026: the new Mayoral administration and how it will affect investment, whether office investment sales will remain resilient and stay over $1 billion in volume for the third straight quarter and if the office-to-residential conversion trend will continue in the market.
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