Manhattan Investment Surges Amid Union Square Growth

Investment Activity Accelerates

The NY Post reports that Manhattan investment sales posted a strong recovery in 2025, driven mainly by the office sector. According to JLL, total sales volume hit $11B, representing a 26% jump from 2024 figures. Major deals like the $1.08B purchase of 590 Madison Ave. marked renewed confidence among institutional and foreign investors, as well as private capital.

Union Square Retail On the Rise

Retail leasing in Union Square demonstrated clear improvement, with storefront occupancy climbing to 91% in Q4 2025 from 85% a year prior. The Union Square Partnership reported 16 new openings in the district, including national tenants like Aritzia, Ulta Beauty and Nespresso. Recent activity from major fashion retailers has also reinforced the area’s momentum, with Uniqlo taking 19,250 SF at 860 Broadway and STK Steakhouse leasing 12,650 SF at 200 Park Ave. South. Storefront rents remain strong, reaching $300 PSF at select locations.

Conversions and Shifting Office Demand

The trend of office-to-residential conversion continues, with 75 projects representing 34M SF either underway or being evaluated. This accounts for about 7% of Manhattan’s office inventory, concentrated mostly downtown but expanding in Midtown as well.

Notable Leasing Momentum

Purple, a global lifestyle PR agency, expanded its New York footprint with a 24,000 SF full-floor lease at 16 Madison Square West, moving from 14,700 SF at its previous address. The move is aimed at supporting the company’s growth and taking advantage of building amenities and location.