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Ariel Property Advisors' Queens 2024 Year-End Commercial Real Estate Trends report reveals a decline in investment sales, despite an increase in transactions. Investment sales dropped 7% year-over-year from $3.18 billion in 2023 to $2.95 billion in 2024. This decline was largely due to a lack of institutional transactions, particularly in the second half of 2024.
While dollar volume decreased across development, hotel, office, and special purpose sectors, multifamily, retail, and industrial assets saw gains. Development sales plummeted 32% from $617.38 million to $418.55 million, reaching its lowest point since 2012. However, the number of transactions increased by 5%, from 482 in 2023 to 507 in 2024.
The passage of the Good Cause Eviction law has created a more predictable environment for multifamily homes, leading to a 10% increase in transactions among these properties. The 485-x tax exemption program and City of Yes initiative are expected to drive development and adaptive reuse opportunities in the near future.
Following the 2024 presidential election and stabilization of federal interest rates, Ariel Property Advisors anticipates increased activity in 2025, with investors shifting from defense to offense. Notable transactions in 2024 included a $246 million industrial portfolio acquisition by Terreno Realty and a $79.2 million sale of Crowne Plaza Hotel.
"The largest transaction in Queens last year was Terreno Realty's acquisition of an industrial portfolio for $246 million," said Ariel Partner Sean R. Kelly, Esq. "This highlights investors' confidence in the JFK area, where a $19 billion redevelopment is transforming the airport into a world-class hub."
