NYC Office Condo Market Report — Second Half 2016
Semi-annual analysis of Manhattan office condominium sales and trends for the second half of 2016.
Download PDFMarket Overview
The Manhattan office condominium market comprises 99 buildings totaling approximately 10.9 million square feet. Midtown accounts for 6 million sqft, Midtown South 2.8 million sqft, and Downtown 2.1 million sqft. By class, Class A represents 3.4 million sqft, Class B 5.4 million sqft, and Class C 2.1 million sqft.
In H2 2016, a record-high 359,082 square feet traded across 46 sales in 25 buildings for a total of $304,040,259, at an average price of $847 per square foot and an average unit size of 7,806 sqft. Square footage reached a record high, compared to just 113,147 sqft in H1 2016, and was considerably higher than the 5-year average of 236,135 sqft. Dollar value of $304,040,259 was more than triple H1 2016 ($93,205,380) and nearly double the 5-year average of $153,991,585. The average price of $847/sqft was 3% higher than $824 in H1 2016 and significantly above the 5-year average of $655. The 46 sales were 31 more than H1 2016 and 9 more than the 5-year average.
By submarket: Midtown dominated with 34 sales totaling 242,627 sqft for $214,248,259 at $883/sqft average. Midtown South had 7 sales totaling 37,179 sqft for $34,250,000 at $921/sqft. Downtown had 5 sales totaling 79,276 sqft for $55,542,000 at $701/sqft.
Availability stood at 841,011 sqft (7.7% rate) across 77 units in 35 buildings with an average asking price of $1,038/sqft. Midtown had 528,115 sqft available at $1,088/sqft, Midtown South 66,260 sqft at $1,327/sqft, and Downtown 246,636 sqft at $852/sqft. Excluding 866 UN Plaza and International Gem Tower, availability was 544,455 sqft at a 4.9% rate.
Market Trends
Dollar Volume by Half Year
Total sales volume per period
Average Price per RSF
Volume-weighted avg vs median $/RSF
Office Condos Sold
Number of transactions per period
Sales by Submarket
Total volume by submarket (all time)
Available Inventory
Current listings by submarket
| Submarket | Buildings | Listings | Available RSF | Avg Ask/RSF |
|---|---|---|---|---|
| Midtown | 29 | 116 | 1,052,616 | $926 |
| Midtown South | 34 | 56 | 346,840 | $778 |
| Downtown | 22 | 78 | 351,106 | $1,002 |
| Total | 85 | 250 | 1,750,562 | $916 |
New Office Condominium Conversions
By Rudder Property Group
Six buildings have recently been converted to office condominiums, bringing 806,222 square feet of new supply across 163 units to the Manhattan market, with an average asking price of $1,133 per square foot.
1. 866 U.N. Plaza — 416,609 sqft, Class A, 93 units, asking $1,142/sqft, average unit size 4,480 sqft. The largest of the new conversions, this building represents a significant addition of Class A inventory near the United Nations.
2. 345 East 37th Street — 105,640 sqft, Class A, 32 units, asking $994/sqft, average unit size 3,301 sqft.
3. 24 West 40th Street — 82,394 sqft, Class B, 16 units, asking $1,600/sqft, average unit size 5,150 sqft. The highest asking price among the new conversions.
4. 18 West 33rd Street — 14,055 sqft, Class B, 5 units, asking $1,000/sqft, average unit size 2,811 sqft.
5. 20 West 33rd Street — 159,813 sqft, Class B, 11 units, asking $983/sqft, average unit size 14,528 sqft. Notable for its exceptionally large average unit size.
6. 77 Bowery — 27,711 sqft, Class B, 6 units, asking $1,067/sqft, average unit size 4,619 sqft.
These conversions represent a growing trend of developers recognizing the demand for office ownership in Manhattan and converting traditional rental office buildings into condominium offerings.