Commercial real estate in Manhattan is off to a hot start to the year. A first-quarter report from Avison Young reveals that investment sales in the borough reached $3.70 billion in volume across 92 transactions, marking the region's best three-month performance since 2021.
Also, the categories were up 33 percent and 19 percent quarter-over-quarter, respectively.
By volume, multifamily stood out the most, with sales skyrocketing by 246 percent to $1.07 billion across 44 transactions. Retail also showed impressive growth, with its increase of 96 percent to $326.8 million. Office inched up by 1.1 percent to $1.8 billion across 18 deals.
Meanwhile, the development category was the only standalone category to see a decline, with volume dipping by 10 percent to $381 million.
While office activity softened — valuations certainly didn't. Prices per square foot surged by 92 percent to $1,031 in the sector. The category grew more modestly across other sectors, including retail (28 percent, $1,588 per square foot), development (nine percent, $363) and multifamily/mixed-use (eight percent, $1,082).
"Manhattan had a strong start to the year, and a big part of that is investors gaining confidence and leaning into quality," Brandon Polakoff, principal and head of NYC investment sales for Avison Young, said in a statement to GlobeSt.
"There's a deep pool of capital targeting best-in-class assets in prime locations, and when those deals come up, they're getting done. That's been a major driver of the momentum we're seeing."
Some of the largest transactions in the first quarter included 65 East and 55th Street in the office and condos category, trading for $730 million, 411 & 444 West 35th Street in multifamily/mixed-use going for $380.50 million and a development at 250 Water Street selling for $143 million.
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