Manhattan investment sales strongly rebounded from the COVID-19 pandemic in 2022 despite headwinds from rising interest rates and economic uncertainty during the second half of the year, according to Ariel Property Advisors. The transaction count was the highest since 2016 with 419 deals totaling $20.9 billion in sales, a 40% increase in dollar volume from 2021. 

“Multifamily, commercial and office asset classes all showed significant increases,” said Howard Raber, director, investment sales at Ariel Property Advisors “However, the market softened significantly during the second half of the year once it became clear to investors that elevated interest rates and inflation would persist longer than hoped.” 

Founding partner Michael Tortorici added that multifamily properties remained the most transactional of all asset classes in Manhattan, with 58% of all transactions. “This underscores both the market’s appetite for cash-flowing assets and its long-term faith in Manhattan multifamily investments, despite near-term challenges.”

Pictured: 685 First Ave., a Manhattan apartment property that traded for $388 million in the fall of 2022.