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New York is Back: Marcus & Millichap Sees Multi-Family Market Rebound as Strongest in NYC History

Shaun Riney, Marcus & Millichap Brooklyn Agent(right) & (John J. Stewart, Marcus &Millichap Manhattan Agent (left)
Shaun Riney, Marcus & Millichap Brooklyn Agent(right) & (John J. Stewart, Marcus &Millichap Manhattan Agent (left)

Welcome back, New York. Simply put, people want to be in New York City. Just ask Marcus & Millichap – This past year, the brokerage firm has seen an unprecedented increase in NYC transactions from both the buy-side and sell-side, and does not expect the activity to cool off anytime soon.

“The period of time we just went through and are coming out of, the transition from the first quarter to the second quarter especially, drove a large number of buyers back into the market after being dormant for over a year”, said John J. Stewart, one of Marcus &Millichap’s top Manhattan agents.


 “Over the course of Q1-Q2, new rent growth in the multi-family sector drove an enormous amount of new activity and transactions. Marcus & Millichap saw a 131% increase in multifamily Manhattan transactions from the previous quarter and saw the trend continue from Q2-Q3 as well,” Stewart highlighted.

A large portion of the increased transactions were from new entrants to the market. Marcus & Millichap’s top Brooklyn agent, Shaun Riney explained how buyers that were aggressive and jumped in early in the recovery, were mostly newer, younger buyers. 


“This new cycle of buyers tends to be more optimistic. They’re less concerned with lingering long term political effects and are coming into transactions with fresh balance sheets,” he shared.  


Unburdened by past historical perceptions and eager to replicate the successes of those who entered the NYC market soon after the 2008 financial crisis (who did remarkably well over the past cycle), new market entrants chose to act sooner rather than later.


“The transaction volume is best envisioned as a rubber band being pulled back and ready to snap forward. A lot of people were waiting for this time period to end. Renters are back, buyers are back, and sellers have an itch to scratch,” Riney shared. “I’ve never been in a market where there is so much seller demand and buyer demand at the same time.” 


This bounce back isn’t just limited to multifamily apartments. In a recent 2021 Marcus & Millichap Investor and Market Outlook Survey, 55% of respondents plan to increase their CRE holdings by at least one property in 2022. The survey concluded that  investors across asset types are expected to remain active in 2022. 


The increase in apartment rentals and subsequent snap back in rents is one of the most extreme turnarounds in a short period of time in the history of the city. For investors, it’s shown you can’t keep the city down. The flurry of activity is proof that New York City remains a great long-term investment.. Even after a pandemic, demand comes back.

Heading into 2022, NYC transaction volume is expected to keep increasing. That said, Stewart underscored that the greatest ‘unknown unknown’ for investors looking ahead is the political climate and any impending regulations. Working with the Marcus & Millichap team to strategically diversify portfolios, leverage investment opportunities and mitigate risk has never been more important. 

Marcus & Millichap works tirelessly to help clients create and preserve wealth through commercial real estate investment sales as well as debt and equity advisory. The firm has assembled the industry’s largest and most qualified team of specialists to help provide real estate solutions that match your unique investment needs. 

Connect with a Brooklyn or Manhattan agent today to learn more.