March proved to be a successful month for the real estate market in New York City, with a notable rise in the number of closed deals. According to data firm Marketproof, there was a 39% increase in condo deals closed in March compared to February. Moreover, the growth in the market was not limited to just the existing apartments but also extended to newly built or converted apartments that saw a 25% increase in deals compared to pre-pandemic averages.
The largest contract to close in March was a $66.5 million sale for two penthouse apartments at Naftali Group’s The Bellemont in the Upper East Side, while 22 contracts were closed at 300 West 30 Street in the Penn District, further highlighting the successful month the real estate market experienced in the city.
On the retail front, Manhattan has witnessed a sustained upward trend. According to a report by CBRE, the availability of ground-floor retail space decreased in 16 of Manhattan’s shopping corridors in the first quarter of 2023, marking the seventh consecutive quarter of a drop in availability.
Furthermore, the average asking rent has steadily increased, rising to $638 per square foot, a rise of 3.7% from Q4 2022 and 8% YoY. As a result, the aggregate of square footage leased in the previous four quarters increased by 14.5% from the year before. The Flatiron/Union Square area was the most active neighborhood, with 12 deals signed, followed by Soho. The apparel industry saw the most deals, with 27 leases signed for 243,000 square feet. The most significant lease was taken by LVMH, which leased a massive 43,000 square feet.
In conclusion, the city’s real estate market is thriving, with a sharp increase in the number of deals closed in March, while the retail sector has witnessed sustained growth over the past few quarters. The successful performance of both these industries is a testament to the city’s enduring strength and resilience, making it, still and always, an attractive investment destination for investors worldwide.
