NYC Investment Sales Increase 11% in H1 ’24

In the first half of 2024, New York City’s investment sales market showed significant momentum, with a notable 11% increase in transaction volume and a 23% rise in dollar volume compared to the second half of 2023, according to Ariel Property Advisors. This uptick is largely attributed to recent legislative actions like the 485x tax abatement and zoning changes under Mayor Eric Adams’s “City of Yes” initiative, which have revitalized investor confidence. 

Transactions totaling $11.48 billion occurred across 943 deals involving 1,220 properties, with a notable acceleration in the second quarter. Mortgage maturities, previously impacting offices, are now driving activity in the residential sector, prompting landlords to seek equity through sales or refinancing. Approximately 25% of office transactions involved properties earmarked for potential conversions to residential use. 

However, the absence of a successor to the 421a tax abatement has tempered investment in multifamily properties with rent restrictions, despite robust overall transaction figures totaling $3.95 billion.