A recent report found that New York City’s office sales market has seen tremendous growth over the past decade.
A new report from Metro Manhattan took a look at the growth in New York City’s office sales from 2010 to 2019. According to their findings, New York City as a whole had 2,262 office sales close over the last ten years, showing a combined sales volume of over $78 billion. The median sale price for an office space saw a dramatic increase over the years — the price rose from $1.8 million in 2010 to $4 million in 2019, marking a 112% increase overall.
The busiest years for New York City office building sales occurred in 2014 and 2015. In 2014, more than $10.5 billion worth of office properties were. While the dollar volume decreased to $8.8 billion in 2015, the number of sales reached a decade-high record of 302 sales.
In Manhattan, the median price of an office asset in 2010 was at the lofty price of $25 million. In 2019, those prices skyrocketed to $55 million, marking a 120% increase. 2019 alone saw 67 total sales with a dollar volume of $9.4 billion, which is the highest number the decade saw since 2014, which still was the highest in the decade with a $9.7 billion dollar volume.
Over in Brooklyn, the borough saw some steady growth in office sales activity since 2010. The borough reached a peak in 2017 with 55 total sales and a total dollar volume of $855 million, however since then sales have slowed down. Brooklyn office spaces saw a 193% increase in price over the decade, with the median price of $905,000 raising to $2.65 million in 2019.
While Queens had been experiencing a growing increase in interest in the office market, the borough received a lot of recent attention with the announcement of the now-defunct plan to bring Amazon to Long Island City. While the number of sales has been on the decline, the median sale price for Queens office assets increased from $775,000 in 2010 to $3 million in 2019, marking a 263% increase.
The borough’s biggest anomaly was in 2012, where the office sales volume suddenly spiked to $677 million. The report cites the sale of an office building located at 25-01 Jackson Avenue, which sold for $481 million.
Interest in the Bronx as increased significantly since 2010. The number of sales tripled from 8 total sales in 2010 to 30 in 2019, with the total dollar volume growing from $10.9 million in 2010 to $208 million in 2019. The median sales price remained relatively stable, going from $1.1 million in 2010 to $1.4 million in 2019 (a 27% increase).
Over the bridge into Staten Island, the office market is not as active compared to the other boroughs, however investor interest has increased over the past ten years. The median sales price was at $500,000 in 2010 and increased to $800,000 in 2019. Staten Island saw a huge peak in 2018, with the dollar volume jumping to $81 million, and the median sale price raising to $1 million. The report cites the increase to the sale of 1 Edgewater Street, which sold for $47.2 million.
Read the full report at metro-manhattan.com.