New York’s office investment market continues gaining momentum. Notably, sales activity increased for the second consecutive year.
In 2025, office sales totaled $13.4 billion. That figure represents a 34% increase year over year. As a result, total transaction activity reached its highest level since 2019.
After several slow years, investors are gradually returning to the market. Pricing expectations between buyers and sellers are also beginning to align. Consequently, more properties are reaching the market.
While pricing remains below previous peaks, transaction activity continues rising. Investors are becoming more comfortable underwriting office deals in a higher interest rate environment.
Several major transactions helped drive momentum. For example, 590 Madison Avenue sold for $1.08 billion. Real estate investment firm RXR acquired the 42-story, one-million-square-foot Class A tower.
The building sits in the Plaza District near Central Park. Previously, the property operated as the well-known IBM Building.
Meanwhile, owner-user transactions also remained active in 2025. For instance, Weill Cornell Medicine purchased 1334 York Avenue for $510 million.
Luxury auction house Sotheby’s sold its longtime Manhattan headquarters in the transaction. However, Sotheby’s signed a new lease for roughly 295,000 square feet in the building.
Although investment levels remain below 2019 totals, momentum continues improving. Additionally, more available financing and growing buyer interest support the market’s recovery.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
