New York City investment sales volumes were devastated by the pandemic. At the end of the year, investment volumes fell more than 50% in the market, according to research from Cushman & Wakefield, totaling $22.1 billion. This is the lowest investment activity on record since 2010, the pit of the previous recession. Investment volumes in Manhattan, Northern Manhattan and the Bronx fell the most significantly, down 55% for the year. Investment volumes in Queens were down 43%, while Brooklyn fared the best with investment volumes down only 24% for the year, according to the Cushman report.

Decreased institutional investment was the primary reason for decreasing sales volume. Large sales greater than $75 million decreased 59% in 2020. However, sales activity rebounded at the end of the year. In the fourth quarter investment sales totaled $5.5 billion, up 24% from the third quarter and an impressive 48% from the second quarter.

Fourth quarter sales activity helped to offset losses earlier in the year. Research from Real Estate Board of New York in September reported investment sales volume down 54% for the year and a 32% decrease in transaction volume.