Murray Hill
Midtown East, between Grand Central and the UN, a few blocks from our own office on East 42nd Street. Medical, professional office, and mixed-use buildings that trade well below Plaza District pricing.
Office Inventory
Avg. Office Rent
Avg. Cap Rate
Grand Central Proximity
Murray Hill Submarkets
Four micro-markets between Grand Central and Kips Bay, each priced differently.
Grand Central Adjacent (E 40th-42nd)
The office blocks closest to Grand Central Terminal. Professional services and financial firms lease here for the commute.
Avg. Rent
$65-$80/SF
Cap Rate
5.0-5.5%
Kips Bay Medical Corridor
Medical and professional office clustered around NYU Langone and the VA Medical Center. Healthcare tenants keep demand steady.
Avg. Rent
$50-$65/SF
Cap Rate
5.5-6.5%
Lexington/Third Avenue Retail
Busy retail avenues serving one of Manhattan's denser residential populations. Food, beverage, and convenience tenants lease fast.
Avg. Rent
$80-$120/SF
Cap Rate
5.0-6.0%
Park Avenue South Fringe
The southern edge, picking up tech and creative tenants spilling over from Park Avenue South. More interest in boutique office and mixed-use each year.
Avg. Rent
$55-$70/SF
Cap Rate
5.5-6.0%
Murray Hill Property Inventory
Office
Avg: 60,000 SF
Medical/Professional
Avg: 15,000 SF
Retail
Avg: 3,500 SF
Mixed-Use
Avg: 25,000 SF
Recent Murray Hill Transactions
A sample of the deals we have closed in Murray Hill.
Why Invest in Murray Hill?
Grand Central Transit Access
Grand Central Terminal brings Metro-North, the 4/5/6/7/S subway lines, and now the LIRR. Tenants want to be near it, and office rents show it.
Medical/Professional Tenant Base
The Kips Bay Medical Corridor, anchored by NYU Langone, gives owners unusually stable, long-term tenancy. Medical and professional office tenants sign long leases and rarely leave.
Affordable vs. Plaza District
Murray Hill trades well below Plaza District and core Midtown pricing. You get a higher yield and the same Midtown East transit and infrastructure.
467-m Conversion Opportunities
Older Class B/C office buildings here can convert to residential under the 467-m tax incentive. Residential demand is strong enough that converted units lease quickly at top rents.
Murray Hill Real Estate FAQ
What makes Murray Hill attractive for commercial real estate investment?
Location, mainly. Murray Hill sits in Midtown East between Grand Central Terminal and the United Nations, with excellent transit and a deep pool of professional tenants. Pricing is well below the Plaza District, and office, medical, and retail fundamentals are solid. The residential density supports ground-floor retail, and Grand Central puts commuters on the sidewalk every weekday.
What is the Kips Bay Medical Corridor and why does it matter for investors?
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 sign long leases, rarely move, and keep paying through downturns. Income buyers who want predictable cash flow like that.
What are typical cap rates for Murray Hill commercial properties?
Murray Hill cap rates range from 5.0% to 6.5% depending on property type and location. Grand Central-adjacent office buildings trade tighter (5.0-5.5%). Medical office and mixed-use properties in Kips Bay can reach 5.5-6.5%. Retail properties on Lexington and Third Avenue usually fall in the 5.0-6.0% range. All of that is a useful spread over prime Midtown.
Is Murray Hill a good market for residential conversion projects?
Often, yes. Older Class B/C office buildings with floor plates that no longer work for modern office users can make good candidates under 467-m and other incentive programs. Residential demand is strong, transit is excellent, and rents are lower than in nearby luxury markets, so converted units lease easily. Send us the building and we will tell you whether it pencils.
Own a Murray Hill Property?
Get a confidential valuation and a clear picture of who is buying in Murray Hill right now. We know the medical office investors, professional service firms, and conversion developers active here.