In 2023, Manhattan experienced a significant decrease in investment property sales, with only $11.1 billion recorded. This marked a 45% drop from the previous year and was the lowest amount seen in the past decade (excluding 2020), according to Ariel Property Advisors’ report.
The decline can be attributed to investors’ cautious approach due to concerns about higher interest rates, increasing expenses, and potential expansion of residential rent regulation. However, there was one bright spot as hotel sales reached their highest level since 2019.
The Manhattan office market also saw a decline in dollar volume by 58% compared to the previous year at $2.87 billion. The price per square foot also dropped by 22%, reaching $848.
According to Howard Raber, Director of Investment Sales at Ariel Property Advisors: “Looking back on 2023, investors continued their conservative approach towards the market as they have since 2021.” He further added that they expressed concern about higher interest rates and rising expenses while being apprehensive about potential expansions of residential rent regulation.
This news highlights how Manhattan’s investment sales totaled $11 billion in ’23 without mentioning any specific organizations or locations such as Connect CRE or Connect LA or Texas.
