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Manhattan Investment Sales Total $11B in ’23
Manhattan witnessed a significant decline in investment property sales, recording $11.1 billion in 2023, marking a 45% drop from 2022 and the lowest in the past decade (excluding 2020), according to Ariel Property Advisors’ report.
The cautious approach of investors due to concerns about higher interest rates, rising expenses, and potential expansion of residential rent regulation contributed to the decline. Notably, hotel sales were a bright spot in 2023, reaching the highest level since 2019. The Manhattan office market saw a 58% YoY decline in dollar volume to $2.87 billion, with the price per square foot falling 22% to $848.
“Looking back at 2023, investors maintained the same conservative approach to the market as they’ve held since 2021, expressing concern about higher interest rates, rising expenses, and apprehension over the potential expansion of residential rent regulation,” said Howard Raber, Director, Investment Sales, for Ariel Property Advisors.
- ◦Sale/Acquisition
- ◦Financing
