The office sector powered a dramatic surge in Manhattan investment sale activity in 2025, when volume swelled more than 26% over the previous year 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 trends overcame most of the pandemic years’ damage.
The biggest single purchase was the $1.08 billion acquisition of 590 Madison Ave. by RXR and Elliott Investment Management – the highest price for an office tower in more than three years.
Team member David Gincola said, “This data reframes the narrative for investors.”
Drew Isaacson noted “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 trend has spread to Midtown.
The JLL team also included Jennifer Zelko.
The survey offered insights into the office-to-apartment phenomenon. It cited no fewer than 75 Manhattan conversions either under construction or being evaluated. The total could be as high as 34 million square feet representing 7.1% of the city’s total office inventory.
Union Square boom
No sooner did we cast shade on recent retail-leasing surveys that overstate activity and underplay vacancies than a report comes along showing demonstrable improvement in at least one high-profile area.
As per the Union Square Partnership, the territory covered by the business improvement district displayed soaring retail commitment in the fourth quarter. Storefront occupancy increased to 9%, compared to 85% for the same period the year 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 offices “in particular drawing renewed investor confidence for the first time in seven years.”
According to the BID, 16 new businesses – half of them food-and-beverage — opened late last year including national retailers like Aritzia, Ulta Beauty and Nespresso.
Just as meaningfully, new tenants are coming soon to five Union Square addresses that were long dark. The largest will be Uniqlo with 19,250 square feet at 860 Broadway at the park’s northern end.
Also on the way 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 square feet at 200 Park Ave. South.
Storefront rents are healthy and rising, typified by $300 per square foot at 41 Union Square West where Voodoo Doughnuts is coming, Crain’s reported.
Seeing Purple
Purple, a prominent lifestyle public relations agency, is expanding in the city big-time with a move to Adams & Company’s 16 Madison Square West. The company signed for 24,000 square feet on the building’s entire fourth floor. It had only 14,700 square feet at 322 Eighth Ave.
Purple represents luxury lifestyle and hospitality brands worldwide, including prominent New York hotels such as The Mark, Ian Schrager’s new Public and many trendy restaurants.
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.”
