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Market conditions may have slowed the pace of transactions this summer, but New York City’s commercial real estate investment sales market soared in the first half of 2022, with $21.6 billion of total volume, a 99.1 percent year-over-year increase, Commercial Observer can first report.
The Big Apple’s transaction activity reached $9.8 billion in the second quarter to continue its recent momentum following two of its highest dollar volume quarters since the second quarter of 2019, according to data provided by Cushman & Wakefield. The city’s midyear total volume numbered $21.6 billion.
Deal volume rose within nearly every CRE sector in the first six months of 2022 compared to the same period in 2021, including elevator multifamily properties (up 373.1 percent), office (up 168.1 percent), walk-up apartment assets (up 114.4 percent), industrial (up 83.8 percent) and retail (up 57.7 percent). Development site transactions also jumped 51 percent for the first half of the year, but C&W cautioned that land deals could suffer near-term for multifamily projects because the city’s 421a tax abatement program expired in mid-June without a replacement in place.
The second quarter produced 554 CRE transactions consisting of 719 properties, both nominal year-over-year increases. Pricing across New York City for core property types averaged $582 per square foot, a slight decrease from the first quarter’s $604 per square foot, its highest level since 2019.
Some of New York City’s notable property sales that closed in the second quarter included Blackstone’s acquisition of a luxury rental tower at 8 Spruce Street for $930 million, SL Green Realty purchasing an office property at 450 Park Avenue for $445 million, and MCR buying Sheraton New York Times Square from Host Hotels & Resorts at 701 Seventh Avenue for $373 million.
Andrew Coen can be reached at ac***@co****************.com.
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