- Office assets in New York City saw a 30% rise in investment to $11B for 2025, per JLL.
- Notable deals included the $1.1B sale of 590 Madison Avenue and significant office sales in Manhattan.
- Office-to-residential conversions represented about 34M SF, with Lower Manhattan leading conversions.
- Investor momentum returned, with private and institutional capital re-engaging after a slow period.
Investor Momentum Builds
Office assets in New York City drew renewed investor interest in 2025, with JLL reporting a significant $11B in annual investment volume. The sector’s 30% year-over-year growth signals improving confidence in the city’s office market and a noteworthy recovery in capital markets activity, says the Commercial Observer.
Major Transactions Highlight Confidence
Key deals spurred overall volume, including RXR’s $1.1B acquisition of 590 Madison Avenue and Weill Cornell’s $510M purchase of the Sotheby’s building at 1334 York Avenue. Sovereign Partners’ $273M buy of 2 Grand Central Tower further underscored robust deal activity in prominent Manhattan locations.
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Conversions Reshape the Market
According to JLL, about 34M SF of office space across 75 properties in Manhattan are completed, underway, or under consideration for residential conversion. Lower Manhattan leads this trend, leveraging favorable zoning and building layouts. Notable conversions include 25 Water Street and targeted projects at 222 Broadway and 75 Maiden Lane.
What’s Next
Industry leaders at JLL observe that office buyers are no longer only testing the market—they are actively pursuing opportunities, particularly in established, well-leased assets. The rebound in office assets investment sets an optimistic outlook for further deal flow and market normalization entering 2026. Recent capital moves, including Amazon’s $11B commitment to data center development in Georgia, reflect a growing willingness among institutional players to re-engage in large-scale real estate plays.
