Investment in Manhattan real estate is booming — with Union Square storefronts filling up
The workplace sector powered a dramatic surge in Manhattan investment sale exercise in 2025, when quantity swelled more than 26% over the earlier yr to $11 billion, according to a new report from JLL.
The double-digit growth signaled a return of investor confidence – which lagged even as leasing and return-to-office tendencies overcame most of the pandemic years’ harm.
The largest single buy was the $1.08 billion acquisition of 590 Madison Ave. by RXR and Elliott Investment Management – the highest price for an workplace tower in more than three years.
The $1.08 billion deal for 590 Madison Ave. was the single largest real estate deal in Manhattan last yr. Google Maps
Team member David Gincola said, “This data reframes the narrative for investors.”
Drew Isaacson famous “re-engagement by private capital, foreign groups and institutional players.”
“Buyers are no longer just testing the waters, but diving back in selectively,” he added.
Some 60% of conversions are occurring downtown, although the development has unfold to Midtown.
The JLL team also included Jennifer Zelko.
The workplace sector powered a surge in Manhattan investment sale exercise in 2025, when quantity swelled more than 26% over the yr before to $11 billion, according to JLL ChiccoDodiFC – stock.adobe.com
The survey provided insights into the office-to-apartment phenomenon. It cited no fewer than 75 Manhattan conversions both under building or being evaluated. The complete might be as high as 34 million sq. ft representing 7.1% of the metropolis’s complete workplace stock.
Union Square growth
No sooner did we cast shade on recent retail-leasing surveys that overstate exercise and underplay vacancies than a report comes alongside exhibiting demonstrable enchancment in at the least one high-profile space.
As per the Union Square Partnership, the territory covered by the business improvement district displayed hovering retail dedication in the fourth quarter. Storefront occupancy elevated to 9%, in comparison with 85% for the same period the yr before.
JLL senior managing director Andrew Scandalios, the co-leader of the firm’s capital markets group, said that over the course of 2025, “Momentum steadily rebuilt,” with workplaces “in particular drawing renewed investor confidence for the first time in seven years.”
Storefront occupancy in the Union Square space elevated to 9% in the fourth quarter last yr. Mario Hagen – stock.adobe.com
According to the BID, 16 new companies – half of them food-and-beverage — opened late last yr including national retailers like Aritzia, Ulta Beauty and Nespresso.
Just as meaningfully, new tenants are coming soon to 5 Union Square addresses that had been long darkish. The largest will probably be Uniqlo with 19,250 sq. ft at 860 Broadway at the park’s northern end.
Also on the approach soon are Flight Club at 31 Union Square West, which was vacant since Bluewater Grill closed in January 2019; and STK Steakhouse, with 12,650 sq. ft at 200 Park Ave. South.
Storefront rents are healthy and rising, typified by $300 per sq. foot at 41 Union Square West the place Voodoo Doughnuts is coming, Crain’s reported.
Seeing Purple
Purple, a distinguished lifestyle public relations company, is increasing in the metropolis big-time with a transfer to Adams & Company’s 16 Madison Square West. The company signed for twenty-four,000 sq. ft on the building’s complete fourth flooring. It had only 14,700 sq. ft at 322 Eighth Ave.
Purple represents luxurious lifestyle and hospitality manufacturers worldwide, including distinguished New York inns such as The Mark, Ian Schrager’s new Public and many stylish eating places.
The landlord was repped in-house by Jeff Buslik and Ben Levy, while a JLL team including Simon Landmann, Harrison Potter and Graham Jameson repped Purple.
Landmann said, “Purple was seeking a full-floor environment that could support its continued growth while offering strong identity, natural light and proximity to transit and amenities.”
Purple CEO Fergus Lawler added, “We believe in establishing long term relationships with clients and suppliers and the relationship with JLL gives us an edge in getting the best value for our business.”
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