After nearly two years of adjustment, Q2 2024 showed the clearest signs yet that Manhattan commercial real estate is finding its footing. Transaction volume rose 22% quarter-over-quarter.
Key Market Indicators
- Transaction volume up 22% QoQ
- Cap rate compression of 15-25 bps in multifamily
- Office trades resuming with realistic basis expectations
- Development site activity picking up in target neighborhoods
Buyer Composition Shifting
Private capital dominated Q2, but institutional investors are showing renewed interest. Foreign capital, notably from Asia and the Middle East, is increasing allocation to NYC.