New York City Market Update: Sales Actually Increase YoY

Office transactions in New York City exceeded $1.1 billion in January, marking a 3 percent increase in investment volume compared to the same month in 2020. Three Manhattan properties totaling 718,108 square feet of office space traded in January this year at an average $1,440 per square foot.

That marked a slight decline in comparison with last January, when nine properties totaling 2.2 million square feet changed hands throughout the boroughs. Mirroring consistent investor sentiment in urban primary assets, five of those deals also involved Manhattan assets, while investors also targeted larger properties in Brooklyn, Queens and the Bronx. This January, only smaller office assets drew buyers’ interest outside of Manhattan.

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The largest transaction was The 601W Cos.’ $809.9 million acquisition of 410 10th Avenue, a 638,000-square-foot Chelsea high-rise located at 460 W. 34th St. SL Green Realty Corp. and its partners sold the 1927-built property at $1,269 per square foot. JPMorgan Chase provided $565 million in acquisition financing. The parties originally signed a sale agreement in November 2020, which fixed an initial sales price at $952.5 million. Amazon is the anchor tenant of 410 Tenth Avenue—the e-commerce giant leases more than 350,000 square feet at the 20-story property.

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