Market Update: Manhattan Office 1H 2024

We studied the sale of office buildings in core Manhattan from $5-$200M in four categories: (1) class-b investment sales (2) user buyer sales (3) residential conversion sales and (4) other.

A trend that is becoming more common, and we expect to continue, is that 25% of all office sales included some form of existing lender participation (ie. foreclosure, note sale, deed in lieu, direct lender sale, etc.).

Additionally, more office buildings have sold in the first half of 2024, than sold in all of 2023 for this market segment, and we expect increased volume in the second half of the year.

(1) class-b investor buyers paid a 45% discount.
(2) user buyers paid a 37% premium.
(3) residential conversion properties traded at a 19% discount.

*discount / premium from average $/SF across total dataset.