Manhattan has reclaimed its position from the end of 2023 as the top market in the country for office sales volume through June, according to the latest office report from CommercialEdge. Surprisingly, before June, Manhattan was ranked fifth so far this year, with Washington, D.C. leading, followed by the Bay Area; Boston; and Houston, Texas. The major turnaround was driven by a significant transaction in June, which boosted Manhattan’s sales volume from $570 million in May to more than $1.4 billion by the end of June.

The key deal involved the sale of a mixed-use building at 980 Madison Ave. on the Upper East Side, which is known for its art galleries. Aby Rosen’s RFR Holding sold the 134,000-square-foot property for an impressive $560 million to Michael Bloomberg’s Bloomberg Philanthropies, which plans to convert 86% of the building for its use. This selling price was 60% higher than the building’s most recent appraisal of $350 million in 2021 — especially noteworthy considering that office property values may be near the market’s low point.

980 Madison Ave., New York, NY 10075

As recently reported in Bisnow, the major transaction at 980 Madison Ave. highlights a broader market shift in which institutional buyers are largely stepping back from making purchases. This change has created opportunities for end-users, family offices, private buyers, and high-net-worth individuals and showcases a pattern of private and end-user acquisitions becoming increasingly prominent in the market.

Additionally, this surge in sales volume has positioned Manhattan as not only the national leader in sales volume, but also in average sale prices: The same report shows that properties in Manhattan are trading at an average of $588 per square foot. That’s almost 67% higher than the figures from the previous month, which stood at $300 per square foot. Furthermore, Manhattan continues to be the priciest office market in the U.S. with asking rents reaching $71.34 per square foot at the end of June — a 1.1% increase from the previous year.

For more details on the Manhattan office market or any of the nation’s 120 markets, consult CommercialEdge’s complete national office report.

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