{"id":1004747732,"date":"2025-03-11T01:00:00","date_gmt":"2025-03-11T09:00:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004747732"},"modified":"2025-03-11T06:32:34","modified_gmt":"2025-03-11T14:32:34","slug":"manhattan-office-sector-leads-in-sales-volume-as-prices-dip","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/manhattan-office-sector-leads-in-sales-volume-as-prices-dip\/","title":{"rendered":"Manhattan Office Sector Leads in Sales Volume as Prices Dip"},"content":{"rendered":"
\n
\"Exterior<\/a>
Built in 1949, the building at 980 Madison Ave., in Upper East Side, changed ownership in June. Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n

At the end of 2024, the biggest office metro in the country continued to struggle with new supply, while investment activity picked up pace since 2023, according to CommercialEdge data. Manhattan transaction trends are similar to the sector\u2019s performance on a national level<\/a>.<\/p>\n\n\n\n

Considering the evolution of return-to-office<\/a> policies, rising maturing debt and high construction costs, the metro showed mixed signals. The borough’s total sales volume for 2024 was the largest in the country and marked a 76 percent year-over-year increase. However, with the increase in discount deals<\/a>, the average sale price per square foot dipped to $363.62 per square foot.<\/p>\n\n\n\n

Manhattan office sales prices dip<\/h2>\n\n\n\n

In 2024, 11.3 million square feet of office space across 47 properties changed ownership in Manhattan, adding up to a total volume of $4.1 billion. Last year’s investment volume marked a 76 percent jump, compared to 2023’s total. Among gateway markets, Manhattan kept its leading position, followed by Washington, D.C., with $3 billion in deals, and Los Angeles, with $2.1 billion.<\/p>\n\n\n\n

Investor appetite in the borough increased consistently throughout last year\u2014from the $99.2 million recorded at the end of the first quarter, to the fourth quarter’s $1.4 billion. One of Manhattan\u2019s biggest transactions last year was Bloomberg Philanthropies\u2019 $560 million acquisition<\/a> of 980 Madison Ave. The company picked up the 118,635-square-foot asset in June after the seller, RFR Realty, defaulted on a $197.6 million loan.<\/p>\n\n\n\n