Three Trends Impacting New York City Commercial Real Estate

Tenant behavior in the office market, regulation in multifamily and a much higher cost of capital contributed to a 43% drop in New York City investment sales to $12.8 billion in 1H 2023 from 1H 2022, according to research compiled by Ariel Property Advisors.

However, that drop was expected as we began to see a slow down at the end of 2022 due to rapidly rising interest rates. As a result, while the first quarter was lackluster, the market improved during the second quarter as savvy investors seized the opportunity to invest in repriced assets.