- CRE sales in the New York Tri-State region hit $8.8B in Q2, up 11% year-over-year, according to CBRE.
- Retail was the standout, jumping 50.9% to $1.59B, while industrial (21.3%) and office (18.3%) also posted gains.
- Multifamily led in volume at $2.55B, though it fell 10.6% overall, with Fairfield County (CT) and Hudson Valley (NY) bucking the trend.
- Cross-border investment soared 500% year-over-year, led by Japan at $1.1B.
Tri-State Market Momentum
The New York Tri-State commercial real estate market showed renewed strength in the second quarter, with investment activity climbing to $8.8B—an 11% increase year-over-year. CBRE attributes much of the growth to stronger activity in retail, industrial, and office assets, per Globe St.
Retail Takes the Lead
Retail investment surged 50.9% to $1.59B, the fastest-growing asset class in the quarter. Industrial also saw double-digit growth at $1.73B (up 21.3%), while office posted $2.19B (up 18.3%).
Multifamily remained the largest category by volume at $2.55B, but investment fell 10.6% compared to last year. However, submarkets like Fairfield County, Connecticut, and New York’s Hudson Valley bucked the broader slowdown with massive growth of 322% and 186%, respectively. Hotels were the only other lagging sector, plunging 21.3%.
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Regional Standouts
The Bronx posted the sharpest growth among Tri-State regions, with investment activity surging 178.9% in the trailing four quarters through June. Midtown Manhattan led in total volume, recording $8.3B, both markets driven largely by residential sales.
Global Capital Flows
Foreign investment into the Tri-State spiked 500% year-over-year in Q2, led by Japan with $1.1B. Over the trailing four quarters, however, cross-border capital slipped 8%. Private owners were the largest foreign buyers, followed by investment managers and insurers.
National Context
On a broader scale, Greater New York recorded $37B in investment over the past four quarters, topping all US markets. Los Angeles ($30B) and Dallas ($24B) followed. Still, New York ranked only ninth in growth among the top 20 US markets.
CBRE projects national CRE sales to rise 10% in 2025, with office assets leading the recovery at an anticipated 19% growth. The firm, however, trimmed its US GDP forecast to 1.5% from earlier expectations of 2%–2.5%.
