Manhattan Investment Sales Top Pre-Pandemic Levels, Again
Activity levels are promising for the second consecutive quarter.
Investment sales have rebounded to pre-pandemic levels for the second consecutive quarter in Manhattan, according to a report by Avison Young.
Manhattan recorded 87 transactions for an aggregate value of $5.4 billion, representing a 109% increase in deal count and 45% increase in total dollar volume over the trailing four-quarter average, the report showed.
“This is the second consecutive quarter where we are seeing dollar volume quadruple and transaction count more than double the COVID average,” James Nelson, principal & head of tri-state investment sales at Avison Young, said in prepared remarks.
If this momentum continues throughout the remainder of the year, Manhattan investment sales will surpass 2019 levels, totaling $21.6 billion across 348 transactions, Nelson said.
“Multifamily/mixed-use properties outperformed the other asset classes in deal volume, which we can attribute to the pent-up demand from 1031 buyers and investors looking to capitalize on the influx of residents flocking back to the city,” he said.
However, office properties achieved the quarter’s highest dollar volume of $3.3 billion, with noteworthy transactions such as Google’s $1.97 billion purchase of St. John’s Terminal signifying restored confidence in this sector.
Multifamily, Mixed Use Lead Volume
Multifamily and mixed-used properties experienced the largest share of activity in the first quarter, accounting for 47 transactions for just over $1.6 billion in total dollar volume, a 57% increase and 115% increase off the trailing four-quarter average, respectively.
The development market was the second most active, recording 14 transactions for $302 million, a 100% increase in sales and 26% increase in total dollar volume from the trailing four-quarter average.
Office trades accounted for 11 transactions totaling $3.3 billion, increasing 47% and 184% from the four-quarter average, respectively. Retail sales in Manhattan recorded 10 transactions in the first quarter for $101 million in total dollar volume, which was an 11% increase in deals and 40% decrease in total dollar volume from the trailing four-quarter average.