NEW YORK, NY – August 11, 2022 – The Queens investment sales market in the first half of 2022 achieved the best-performing half on record by all volume metrics with $2.86 billion in sales, 354 transactions over 467 properties, up 13%, 6%, and 11% respectively when compared to 2H 2021, according to a research report produced by Ariel Property Advisors, Queens 2022 Mid-Year Commercial Real Estate Trends.

“Queens’ impressive performance was fueled by the post-Covid bounce back in the rental markets for apartments, warehouses, and retail along with the urgency to close on transactions prior to the rapidly increasing interest rates,” said Alexander Taic, Director, Investment Sales for Ariel Property Advisors.

Dorit PInhas, Director, Investment Sales, added, “We expect that the industrial, warehouse, and self-storage assets will continue to flourish in Queens due to ample space and zoning for these types of properties. However, rising interest rates, rising inflation, and the expiration of Affordable New York (421a) are expected to impact the multifamily and development sector because most of the developments in Queens are for rental consumption.”

Multifamily. Dollar volume rose to $805 million, 28% higher than 2H 2021 and 240% higher than 1H 2021. Of the 198 multifamily transactions in 1H 2022, 55% were small mixed-use and multifamily properties, setting a record at 110 transactions totaling over $200 million. Compared to 2020 and 2021, the price per square foot at $295 and the price per unit at $240,684 were higher in 1H 2022, while the cap rate was lower at 5.32%.

Industrial. The industrial sector set a record for dollar volume in 1H 2022 with over $750 million in trades, the second most active asset class in Queens after multifamily. Of the borough’s top 15 trades by dollar volume in 1H 2022, seven were industrial and warehouses. The sale of 27-11 49th Avenue was the largest industrial transaction in 1H 2022 by dollar amount, trading for $105.5 million, a 40% increase from the property’s $70 million previous sale two years prior.

Development. Queens recorded 37 development transactions totaling $675 million in dollar volume in 1H 2022, a slight decline from 2H 2022. The price per buildable square foot remained steady at $214/BSF compared with 2017-2021. Carmel Partners’ $176 million purchase of 43-30 24th Street offering 600,000 BSF was the largest development deal during the six-month period.

To read the full Queens report, please click here. To access reports for the other submarkets—Manhattan, Northern Manhattan, the Bronx, Brooklyn—and the 2Q 2022 Multifamily report, please click here.