New York City investment-property sales totaled $23.69 billion during the first nine months of 2026, up 9.1 percent from the same period last year, according to a new market report from Ariel Property Advisors. The firm counted 1,914 transactions involving 2,496 properties, increases of 7.9 percent and 8.9 percent. The headline indicates a broader recovery from recent lows, but the quarterly detail shows that momentum was concentrated in the first half of the year.
First-quarter dollar volume rose 36 percent from a year earlier and the second quarter increased 31 percent. In the third quarter, however, volume declined 25.2 percent to $6.73 billion. Part of that comparison reflects an unusually large Manhattan office sale in the third quarter of 2025, but financing also became more difficult as the 10-year Treasury yield moved above 5 percent in September and the Federal Reserve raised its policy rate.
Multifamily properties accounted for the largest share of activity. Sales totaled $6.99 billion, up 7.9 percent, across 1,044 transactions. Smaller multifamily buildings recorded particularly strong gains in both dollar volume and deal count. Those figures suggest continued demand for apartment assets, although higher borrowing costs and city rules affecting rents and development can change the economics of individual buildings. Aggregate sales data does not establish that every segment or neighborhood strengthened equally.
Development sites and conversion properties produced $5.24 billion in sales, up 9.7 percent from a year earlier. The number of transactions was nearly flat. Conversion activity weakened during the third quarter, falling to 12 deals and $220.7 million from 15 deals and $639.8 million a year earlier. Manhattan still accounted for 24 of the city’s 42 conversion transactions through September, reflecting continued interest in turning selected commercial properties into housing.
Office sales reached $5.20 billion, down 2.8 percent from last year but more than double the comparable volume two years ago. The transaction count rose to 95. That combination—slightly lower total dollars but more trades—suggests a market with improving liquidity beyond a few trophy deals. Still, the office sector remains divided by building quality, location, leasing strength and the capital required to modernize or reposition older properties.
Retail property volume increased 2.5 percent to $2.27 billion, while hotel sales rose 18.4 percent to $1.08 billion. Industrial, warehouse and storage sales totaled just under $1 billion. Special-purpose properties posted the largest percentage gain, though that category includes a mix of assets and represents a smaller share of the market. Investors should therefore compare asset-level income, debt and condition rather than treating the citywide increase as a uniform price signal.
The report includes projected closings, so later revisions may change the final totals. It also measures completed investment transactions, not new construction, leasing or home sales. Those distinctions matter because the city’s property economy can show strong office leasing while investment trades slow, or active apartment transactions while financing terms become more restrictive. The third-quarter pullback illustrates how quickly interest rates can interrupt an improving sales cycle.
For New York, the nine-month figures show a market that remained active through a volatile year. Buyers and sellers completed more deals and traded more properties than in 2025, even as the summer cooled and rate uncertainty returned. The next test is whether the broader transaction base can carry into the final quarter without the unusually strong first-half comparisons. Financing costs, Treasury yields and the Federal Reserve’s policy path will remain central to that outlook.
Sources: Ariel Property Advisors report; Ariel Property Advisors release. Reviewed October 29, 2026. Development: Report released October 22, 2026.