Residential Sales Activity Rebounds in March
New York City logged 302 signed contracts in March—its best showing since October 2024. Manhattan and Brooklyn led the way, while Queens lagged. The luxury segment was particularly strong, with 53 deals above $4 million and six contracts topping $20 million at 111 West 57th Street.
Manhattan recorded 157 signed contracts (median sale price $2.65M), Brooklyn logged 115 ($1.27M), and Queens dropped to 30 ($790K). Despite strong activity, Marketproof analysts noted that limited new inventory in Manhattan is becoming a growing concern.
Sotheby’s Nikki Field echoed the trend of high-net-worth buyers viewing NYC real estate as a stable place to park capital amid global unrest.
Rental Prices Soar Across the Boroughs
Median rent in Manhattan held steady at $4,495, up nearly 10% year-over-year. Brooklyn hit $3,700 (up 6%) and Queens reached $3,450 (up 8%).
While last year’s rent growth was driven by interest rate hikes, this year’s spike is more about geopolitical and economic uncertainty—particularly surrounding President Trump’s proposed tariffs. Jonathan Miller told The Real Deal, “We’re at peak uncertainty... There is no apparent plan or strategy.”
As a result, some buyers are backing out of deals, and renters are staying put, tightening supply even further heading into peak leasing season.
Tariff Volatility Clouds Market Outlook
The announcement—and partial rollback—of sweeping tariffs introduced disruption across several sectors. In real estate, buyers pulled back, underwriting slowed, and decision timelines lengthened.
In the industrial sector, panelists at the Commercial Observer’s National Industrial Forum highlighted the difficulty in pricing new development. General contractors are issuing tariff allowances instead of hard numbers, complicating underwriting.
“Uncertainty is tough for tenants. It’s tough for landlords. It’s tough for everybody who’s trying to make a decision,” said Alex Redfearn of Redfearn Capital.
Industrial Fundamentals Hold Despite Short-Term Headwinds
While the pandemic-fueled industrial boom has cooled, demand for logistics, warehouse, and IOS (Industrial Outdoor Storage) remains strong. Investors are taking a long-term view, focusing on macro fundamentals like e-commerce, regionalization, and the need for cold storage infrastructure.
Tariffs are clearly a near-term concern, but firms like GID Credit stress their commitment to fundamentals over reactive strategy.
Westchester’s Multifamily Boom Raises Oversupply Questions
Developers have delivered over 12,500 multifamily units in Westchester since late 2021, with another 15,000 in the pipeline. Most new supply is concentrated in New Rochelle, Yonkers, Mount Vernon, and White Plains.
JLL’s Steve Simonelli cautioned about increasing concessions and underwriting risk. Meanwhile, Jonathan Gertman of NRP Group noted that most new investors wouldn’t pick Westchester as a top-tier target given the saturation risk.
Saks Bows Out of Casino Race
Saks Fifth Avenue has withdrawn its bid for a Midtown casino, citing a shift in strategic focus. Their proposal faced pushback due to landmark building constraints and the absence of a gambling partner.
Ten bidders remain in contention. Resorts World in Queens and Empire City in Yonkers are considered favorites thanks to existing infrastructure.
David Werner Expands Office Conversion Play
Werner is in contract to purchase 5 Hanover Square for $50–60M, a steep discount from the $104M price tag paid a decade ago. The deal reflects broader struggles in the Financial District office market, which now has an availability rate above 20%.
Werner and partner Nathan Berman recently secured $90M for their conversion of 675 Third Avenue and continue to advance the largest office-to-resi conversion in NYC history at the former Pfizer HQ.
Brooklyn Marine Terminal Gets Infrastructure Boost
NYCEDC awarded three contracts totaling $18M to jumpstart upgrades at the Red Hook-based Brooklyn Marine Terminal. The work includes demolition of four old cranes, pier repairs, and installation of an electric ship-to-shore crane.
These upgrades are part of a longer-term $80M transformation to support Blue Highway freight strategies and activate the site as a mixed-use, maritime innovation district.
Feil Organization Locks in Midtown South Refi
The Feil Organization has secured a $62 million refinancing from M&T Bank for 4 Park Avenue, a 364-unit residential building in Midtown South. The new loan refinances a prior $60 million note held by Fannie Mae.
For more insights, consult Jordan Shea.