New York City, January 16, 2026
New York City has seen a 5.4% increase in commercial property values, reaching $1.659 trillion. This growth reflects a recovery across office, retail, and hotel sectors driven by strong demand. The investment sales market in Manhattan is also rebounding, with $6.81 billion in sales in early 2025, indicating renewed investor confidence. As demand rises for high-quality spaces, the outlook for the city’s real estate market remains positive.
New York City’s Commercial Property Values Show Year-Over-Year Gains
New York City has experienced a notable increase in commercial property values over the past year, reflecting a robust recovery in the real estate sector. The total market value of all city properties has risen by 5.4% to $1.659 trillion, as reported in the Fiscal Year 2027 tentative property tax assessment roll. This growth is driven by a resurgence in demand across various commercial property types, including office, retail, and hotel sectors.
Key Highlights
- Overall Market Value Increase: The total market value of all New York City properties has increased by 5.4% to $1.659 trillion, up from $1.57 trillion in the previous fiscal year.
- Commercial Property Performance: The commercial sector, encompassing office, retail, and hotel properties, has shown significant gains, with office buildings experiencing a 2.9% increase in market value, retail buildings 3.4%, and hotels 7.7%.
- Investment Activity: In the first half of 2025, Manhattan’s commercial real estate market saw $6.81 billion in investment sales, a 4% increase year-over-year, indicating renewed investor confidence.
Detailed Breakdown
Office Properties
Office buildings have seen a 2.9% increase in market value, reflecting a rebound in leasing activity. This uptick is attributed to heightened demand from law, tech, and financial firms seeking Class A spaces. The total assessed value for office buildings has risen by 4.2%, indicating sustained interest in high-quality office spaces.
Retail Properties
Retail buildings have experienced a 3.4% increase in market value, driven by a resurgence in consumer spending and the reopening of businesses. The total assessed value for retail properties has grown by 5.9%, with Brooklyn recording the largest increase in assessed value at 7.6%, highlighting the borough’s growing appeal to retailers.
Hotel Properties
Hotel properties have seen a 7.7% increase in market value, reflecting a strong recovery in tourism and hospitality. The total assessed value for hotel buildings has increased by 7.1%, indicating a positive outlook for the hospitality sector in the city.
Investment Sales Activity
Manhattan’s commercial real estate market demonstrated resilience in the first half of 2025, with $6.81 billion in investment sales, a 4% increase year-over-year. This growth is driven by renewed investor confidence and a resurgence in demand across various property sectors. The office sector, in particular, has seen a significant rebound, with leasing activity increasing due to demand for Class A spaces by law, tech, and financial firms.
Conclusion
The upward trend in New York City’s commercial property values underscores a strong recovery and sustained investor confidence in the market. With continued demand across office, retail, and hotel sectors, the city’s real estate market is poised for further growth in the coming years.
FAQ
What is the total market value of all New York City properties?
The total market value of all New York City properties is $1.659 trillion, reflecting a 5.4% increase from the previous fiscal year.
Which commercial property sectors have shown the most growth?
Office, retail, and hotel properties have all shown significant gains, with office buildings increasing by 2.9%, retail by 3.4%, and hotels by 7.7% in market value.
How has investment activity been in Manhattan’s commercial real estate market?
In the first half of 2025, Manhattan’s commercial real estate market saw $6.81 billion in investment sales, a 4% increase year-over-year, indicating renewed investor confidence.
What factors are contributing to the growth in commercial property values?
The growth is driven by a resurgence in demand across various commercial property types, including office, retail, and hotel sectors, as well as renewed investor confidence in the market.
| Feature | Details |
|---|---|
| Total Market Value Increase | 5.4% to $1.659 trillion |
| Office Property Market Value Increase | 2.9% |
| Retail Property Market Value Increase | 3.4% |
| Hotel Property Market Value Increase | 7.7% |
| Manhattan Investment Sales in 1H 2025 | $6.81 billion (4% increase year-over-year) |
Now Happening on X
- @business (January 15, 2026): New York City commercial property values are strengthening, buoyed by banks, tech companies, and law firms moving into trophy offices. View on X
- @BetweenBricks (January 15, 2026): NYC properties were just tentatively valued at $1.659 trillion, a 5.4% increase from FY 2026, with citywide taxable billable assessed value up 5.6% to $325.8 billion; property taxes will rise. View on X
- @CrainsNewYork (January 15, 2026): City’s commercial property values show year-over-year gains. View on X
- @BetweenBricks (January 15, 2026): Class 4 commercial up 4.3% to $349.2B, with Bronx up 8.4%; billables up 5.8% to $141.7B. Office value up 2.9%, retail 3.4%, hotels 7.7%. View on X
- @sergekozhukhar (January 15, 2026): The K-shaped economy is evident in NYC’s commercial office market, with leases for Manhattan space at $100+ per sq ft hitting an all-time high in 2025, up 50% to 6.8 million sq ft. View on X
- @BetweenBricks (January 15, 2026): Class 2 residential value up 6.9% to $422.4B, billables up 6.2% to $126.7B; rentals up 6.2% and 6.8% for billable, with co-ops up 4.6% and condos up 4%. Brooklyn value up 11.8%. View on X
- @nycmaven44637 (January 15, 2026): NYC Commercial Property Values Show Year-Over-Year Gains. View on X
- @GENTomSGates83 (January 15, 2026): New York City commercial property values are strengthening, buoyed by banks, tech companies, and law firms moving into trophy offices. View on X
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