NYC Office Condo Market Report — First Half 2025

At a Glance

• Sales Velocity Picks Up Because Pricing Remains Low: In the first half of 2025 there was $80 million in office condominium sales compared to the five-year average of $86 million in sales. However, there has been a 113% increase in recent sales compared to the $37 million in sales in the Second Half of 2024.
• Pricing Continues to Fall: Office condominium pricing was $414 per square foot in the first half of 2025, down 22% from the $531 per square foot of the second half of 2024 and 36% lower than the five-year average of $647 per square foot.
• 100% Bonus Depreciation and the Case for Office Condos: If you're a CRE broker looking to move from brokerage into ownership, or simply want to diversify your income and reduce your tax exposure, it may be strong time to explore office condo investments.

Market Overview

The Manhattan office condominium market is made up of 113 buildings, occupying a total of 12.5 million square feet. The Midtown submarket is comprised of 6.3 million square feet; Midtown South is comprised of 4.1 million square feet; and Downtown is comprised of 2.1 million square feet. There are 3.6 million square feet of Class A office condominiums, 6.2 million square feet of Class B, and 2.7 million square feet of Class C.

First Half of 2025 Office Condominium Sales: In the first half of 2025, there were 192,239 square feet of office condominium sales in Manhattan totaling $79,608,738. There were 19 office condominium sales, averaging 10,118 square feet per sale, at an average of $414 per square foot.

Square Footage of Sales: The 192,239 square feet sold in the first half of 2025 is 174% higher than the 70,101 square feet sold in the second half of 2024 and 44% higher than the five-year average of 133,382 square feet sold. Out of the 19 sales, five of the sales were over 10,000 square feet.

Dollar Value of Sales: In the first half of 2025, office condominium sales totaled $79,608,738 which is 113% more than the $37,253,234 in sales for the second half of 2024. The dollar value of sales is 8% less than the five-year average of $86,291,884. If pricing remains soft and demand continues to recover, we expect the second half of 2025 to approach or exceed the five-year average.

Average Price Per Square Foot: In the first half of 2025, the average price per square foot was $414. This is 22% lower than the second half of 2024 average of $531 per square foot and 36% lower than the five-year average of $647 per square foot.

Number of Sales: There were 19 sales in the first half of 2025, two sales more than the second half of 2024. The number of office condominiums sold in the first half of 2025 was two less than the five-year average of 21 sales.

Submarket Statistics

The Midtown submarket is Manhattan's largest office condominium submarket, comprised of approximately 6.3 million square feet. In the first half of 2025, there were 11 sales totaling 151,091 square feet. The dollar value of these sales totaled $58,148,738, averaging $385 per square foot.

The Midtown South submarket is comprised of approximately 4.1 million square feet of office condominiums. In the first half of 2025, there were 7 sales totaling 38,499 square feet. The dollar value of these sales was $20,640,000, averaging $536 per square foot.

The Downtown submarket is comprised of approximately 2.1 million square feet of office condominiums. In the first half of 2025, there was 1 sale totaling 2,649 square feet. The dollar value of this sale was $820,000, averaging $310 per square foot.

Availability

There are currently 2,126,573 square feet of office condominiums available in Manhattan (276 units are currently for sale across 94 buildings) with an average asking price of $719 per square foot. This equates to a 16.98% availability rate which is a 1% decrease from the second half of 2024. In the Midtown submarket, 1,196,115 square feet are for sale with an average asking price of $686 per square foot. In the Midtown South submarket, 429,781 square feet are for sale with an average asking price of $791 per square foot. In the Downtown submarket, 500,677 square feet are for sale with an average asking price of $735 per square foot.

As part of Donald Trump's proposed "One, Big, Beautiful Bill" (OBBB), there is talk of restoring 100% bonus depreciation — a change that would have a meaningful impact on real estate investors. For commercial real estate brokers in New York City, this could be a timely moment to invest not just in deals, but in assets they understand: office condominiums.

The Tax Advantage

Bonus depreciation allows investors to immediately write off the cost of certain property components. If 100% bonus depreciation is reinstated, investors in real estate syndications may be able to deduct a large portion of their investment in the first year.

For example, if you invest $100,000 as a limited partner in a syndication that acquires an NYC office condo and completes a cost segregation study, you might receive $70,000 to $90,000 in paper losses allocated to you in year one. If you're a real estate professional or have passive income, these losses can reduce your taxable income substantially.

This is not just about tax strategy, it's about using your income to build long-term wealth in the asset class and market you know well.

Why Office Condos

• Tax-advantaged income
• Long-term capital appreciation potential
• Direct ownership in a hard asset

While the overall office market continues to evolve, the condo submarket provides smaller, targeted investments with professional tenants, manageable leverage, and control over your investment.

Invest in What You Know

As an NYC broker, you already understand the leasing dynamics, the tenant base, and the submarkets. Investing in office condos gives you the ability to evaluate the opportunity clearly, and sometimes even help improve it through your own relationships or insights. It's not a blind investment in a distant asset. It's a focused investment in something you've built your career around.

What We're Doing at RPG

In addition to our brokerage and advisory work, we, and our investors, periodically acquire office condominium units as income producing investments.

We target stable, well-located assets where we see opportunity for long-term value and steady cash flow. Investors who join us as limited partners benefit from professional management, access to curated deals, and full transparency into our strategy and decision-making process.

Whether you're considering investing $100,000 or a larger amount, the return of 100% bonus depreciation could enhance your after-tax returns significantly.