Also showing strength was Upper Manhattan, coming in as the second most active submarket throughout the five boroughs. The neighborhood saw seven transactions consisting of 16 buildings totaling $99.48 million in dollar volume. Part of that included Ariel’s sale of a mixed-use Central Harlem portfolio to Newark-based TreeTop Development for $18.4 million. The portfolio consisted of four buildings with 82 residential units and 11 retail units located at 120-26 West 116th St.; 1917-19 Adam Clayton Powell Jr. Blvd.; 110 St. Nicholas Ave.; and 110 West 116th St.

Shkury says the market is displaying “more institutional appetite to aggregate and buy larger quantities of multifamily buildings,” leading investors to believe in the risk-adjusted returns that these asset classes allow.

“Overall sellers or owners who have been on the fence for the last couple of years are seeing there is that appetite and they are willing to sell today versus a few years back,” he says. “Generally speaking, it is a better environment.”

While building trades are reaching healthy levels, rental rates, in turn, have also held steady. According to March 2012 data MNS, rent prices for the month were up an average of $4 across the borough, despite a 4.3% increase in inventory.

Despite that, Andrew Barrocas, CEO of MNS, says in a statement that rental rates have continued to rise. “As we approach the active spring seasons and graduates start their search, expect to see an even tighter rental market, especially in prime neighborhoods like TriBeCa, SoHo and Chelsea.”

The brokerage research firm also predicts that larger units are more in-demand and will lease up fast. On an annual basis, MNS data shows that the largest increase in rents occurred in two bedroom units at 9%, while the smallest year-to-year change was seen in studios.