- Manhattan multifamily sales jumped 246% to $1.07B in Q1 2026.
- Total CRE investment sales hit $3.7B, up 33% quarter-over-quarter.
- Office prices surged 92%, reaching $1,031 PSF despite modest deal growth.
- Development was the only category to decline, down 10% to $381M.
Multifamily Drives Market Momentum
According to Globe St, investment activity in Manhattan started 2026 strong, with Avison Young reporting a significant surge in sales volume. Overall CRE investment sales totaled $3.7B across 92 transactions, representing Manhattan’s best quarter since 2021. Multifamily was the standout segment, soaring 246% from last year to $1.07B across 44 deals. This robust performance highlights renewed investor appetite for Manhattan multifamily assets.
Sector Breakdown and Pricing Trends
Retail investment volume also saw substantial growth, rising 96% to $326.8M. Office deal volume posted a modest 1.1% gain to $1.8B, yet average office pricing spiked 92% to $1,031 PSF, signaling persistent demand for prime assets. This pricing strength aligns with improving leasing fundamentals, where stronger tenant demand and return-to-office trends are beginning to support occupancy across high-quality buildings. In contrast, development site sales fell 10% to $381M, making it the only sector to decline. Per square foot pricing also climbed in retail (up 28% to $1,588 PSF), development (up 9% to $363 PSF), and multifamily/mixed-use (up 8% to $1,082 PSF).
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Why Investors Are Active
Market leaders say increased confidence and a deep pool of capital are fueling activity, especially for quality, well-located properties. Notable Q1 transactions included the $730M sale of 65 East 55th Street (office/condos), $380.5M for multifamily at 411 & 444 West 35th Street, and a $143M development trade at 250 Water Street.
What to Watch Next
With investor focus returning to Manhattan multifamily and core office assets, market watchers are closely monitoring whether robust momentum will continue into the year. Rising per square foot pricing and increasing deal volume indicate growing competition for quality opportunities in core sectors.
