NEW YORK, NY – October 22, 2026 – New York City's investment sales reached $23.69 billion across 1,914 transactions in the first three quarters of 2026, up 9.1% and 7.9%, respectively, from a year earlier, according to Ariel Property Advisors’ New York City All Asset Investment Sales Report Q1–Q3 2026.

The first half of the year saw robust activity with first- and second-quarter dollar volume up 36% and 31%, year-over-year. However, dollar volume in Q3 2026 declined 25.2% from Q3 2025 to $6.73 billion mostly due to a few very large trades last year, led by the $1.08 billion sale of 590 Madison Avenue.

"While rate volatility created late-summer headwinds, the fundamentals of New York City commercial real estate remain strikingly resilient,” said Shimon Shkury, President and Founder of Ariel Property Advisors. “Surpassing $23 billion in sales through the first three quarters demonstrates that capital is actively deploying into the market—particularly across core drivers like development and multifamily. The steady middle-market volume proves that under the headline numbers, long-term investor confidence in New York City’s fundamental trajectory remains intact."

MULTIFAMILY

      • Multifamily remained the city's largest asset class in Q1-Q3 2026, with dollar volume up 7.9% year-over-year to $6.99 billion. Transactions rose 11.5% to 1,044 compared to last year.
      • Dollar volume in Q3 2026 dropped 23.3% year-over-year to $1.84 billion, marking the lowest quarter since Q1 2024 as transactions over $50 million fell to four from eight the previous year.
      • The largest multifamily trade of Q3 was Mann Group's purchase of Casa Hope from Clipper Equity for $122.5 million, or about $851,000 per unit. The 144-unit building at 118 Hope Street in Williamsburg carries a 35- year 421a abatement, with free market rents of $3,400 to $7,500.

DEVELOPMENT

      • Development dollar volume in the first nine months of the year rose 9.7% year-over-year to $5.24 billion on 326 transactions as the average deal grew to $16.1 million.
      • In Q3 2026, dollar volume declined to $1.47 billion, a 37% year-over-year drop, largely reflecting last year’s substantial $1.5 billion in Manhattan development site sales.
      • Conversions faded in the third quarter, to 12 deals and $220.7 million from 15 and $639.8 million a year earlier. Manhattan still accounted for 24 of the city's 42 conversion deals in Q1–Q3, led by Nathan Berman and Idan Ofer's $104.5 million purchase of 1 Whitehall Street from LoanCore, which had taken it through foreclosure.

OFFICE

      • Year-to-date office sales totaled $5.20 billion, down slightly, by 2.8%, from last year but more than double the volume recorded during the same period two years ago. Transactions increased by 5.6% to 95.
      • In Q3 2026, dollar volume declined 31.4% year-over-year to $1.70 billion, largely reflecting the $1.08 billion sale of 590 Madison Avenue in Q3 2025, while transactions increased from 27 to 33.
      • Buyers paid for occupancy and below-market rents. Meadow Partners bought the 95%-leased 10 East 53rd Street from SL Green for $310 million, an L&L Infinite-led group paid $245 million for 600 Third Avenue, and 60 Guilders and Sentry Realty paid $238 million for 1441 Broadway.

RETAIL

      • Year to date, retail dollar volume rose 2.5% year-over-year to $2.27 billion across 220 transactions, up 7.3%. Demand was concentrated in the city's strongest corridors, where luxury tenants are buying their own buildings.
      • Third quarter dollar volume totaled $589.8 million, down 23.3% from the same quarter last year.
      • The largest retail trade of Q3 was 675 Hudson Street in the West Village, acquired for $100 million by private club operator Caprice Holdings with $165 million of HSBC financing to fund the purchase and renovation.

SPECIAL PURPOSE

      • Special purpose was the biggest mover of Q1–Q3, with dollar volume up 88.4% year-over-year to $1.93 billion and up 146% from two years ago, even as transactions dipped to 56.
      • Third-quarter volume rose 50.2% year-over-year to $457.2 million reflecting school and health-care expansions.
      • Columbia University paid $122 million for a 313-bed student-housing building on Claremont Avenue, which the sellers had bought as a smaller dorm for $38 million in 2024.

HOTEL

      • In the first three quarters of 2026, hotel dollar volume rose 18.4% year-over-year to $1.08 billion across 15 transactions.
      • Third-quarter volume fell 31.3% to $279.9 million.
      • New York posted the nation's highest hotel occupancy in 2025 at 84%, and this summer it led major markets as room rates rose 6.8%.

INDUSTRIAL / WAREHOUSE / STORAGE

      • Industrial, warehouse and storage dollar volume Q1 through Q3 2026 rose 3.5% year-over-year to $988.3 million, with transactions up 10.5% to 158. Queens accounted for more than half of the dollar volume.
      • Third-quarter dollar volume rose 29.9% to $384.7 million.
      • The largest industrial trade of Q3 was Prologis' $49 million purchase of a 116,725-square-foot industrial property at 153-44 South Conduit Avenue in Springfield Gardens, near JFK Airport. Terreno Realty added a Red Hook warehouse at 659 Court Street for $26.25 million.

To read the full report, please click here.