Murray HillCommercial Real Estate

Murray Hill offers a prime Midtown East location between Grand Central Terminal and the United Nations, providing excellent transit access and a deep professional tenant base. The neighborhood combines affordable pricing relative to the Plaza District with strong office, medical, and retail fundamentals. Dense residential population supports ground-floor retail, and proximity to Grand Central ensures consistent commuter foot traffic.

The Kips Bay Medical Corridor runs along First and Second Avenues in the lower 30s, anchored by NYU Langone Health and the VA Medical Center. Medical tenants provide exceptionally stable, long-term occupancy with low turnover rates. These properties command steady rents and are resilient during economic downturns, making them attractive to income-focused investors seeking predictable cash flows.

Murray Hill cap rates range from 5.0% to 6.5% depending on property type and location. Grand Central-adjacent office buildings trade at tighter cap rates (5.0-5.5%) while medical office and mixed-use properties in Kips Bay may reach 5.5-6.5%. Retail properties on Lexington and Third Avenue typically fall in the 5.0-6.0% range. These rates offer attractive spreads compared to prime Midtown.

Murray Hill has significant potential for office-to-residential conversion under 467-m and other incentive programs. Older Class B/C office buildings with challenging floor plates for modern office use can be excellent conversion candidates. The neighborhood's strong residential demand, transit access, and relative affordability compared to nearby luxury markets make converted units highly marketable. Contact us to evaluate specific conversion opportunities.