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Investment sales in Manhattan commercial real estate reached $5.8 billion over in the first half of this year, according to new data from Ariel Property Advisors. This represented a 14% increase from the second half of 2023. A total of 167 transactions were recorded in the first half of the year, up 16% from the second half of 2023.

Within the different sectors of the commercial property market, the dollar volume of retail sales in the first half of the year grew 25% to $1.55 billion across 16 transactions. Manhattan saw 90 multifamily sales during this period that totaled $1.39 billion, a 14% increase in transaction volume and 8% increase in dollar volume from second half of 2023; of the dollar volume, 80% were properties with 10 or more units.

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Office sales totaled $1.18 billion across 23 transactions in the year’s first six months, a 38% and 21% increase, respectively, from last six months of 2023 as mortgage maturities forced activity. Five hotels valued at $435 million traded in the first half of this year, a 38% decline in transaction volume and 60% decline in dollar volume from the second half of 2023. And development sales totaled $1.12 billion in the year’s first half, a 128% increase from 2023’s second half, and transactions totaled 28, an 115% increase over this period. Reported office to residential conversions accounted for approximately 50% of the dollar volume.

“In the first half of 2024, we saw investor sentiment in Manhattan shift noticeably from the second half of 2023’s more conservative approach,” said Howard Raber, director of Ariel Property Advisors. “Consequently, sellers facing mortgage maturities and distress began making tough decisions about their assets and buyers capitalized on the lower prices.”

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