2025 Mid-Year Overview
The investment sales market in Queens saw a modest recovery in the first half of 2025, reversing a sharp decline in the second half of 2024. Total dollar volume increased to $1.72 billion, up by 36% from H2 2024, while transactions rose 7%. The market’s growth was underpinned by robust residential, development and industrial sales. Notably, Queens and the Bronx were the only two submarkets to record gains in both dollar and transaction volume compared to the two preceding half-year periods.
The multifamily sector led all categories in dollar volume during the first half of 2025, fueled by sales of small mixed-use properties and larger rentstabilized and affordable housing buildings. The development, industrial, and special purpose sectors also showed strength, each contributing over $200 million. The period’s largest transaction was in the special purpose category: the New York Power Authority’s $207 million purchase of a 15.7-acre former power plant site at 31-01 20th Avenue in Astoria from BP, which it plans to occupy.
2025 Mid-Year Outlook
The New York City commercial real estate market is entering the second half of 2025 with a complex mix of challenges and opportunities, driven by both global economic trends and crucial local policy shifts. While geopolitical tensions and elevated, albeit stabilizing, interest rates create a cautious environment, a significant surge in foreign investment and strategic development initiatives are bolstering confidence.
The “Big Beautiful Bill” brings significant capital investment incentives. Its permanent reinstatement of 100% bonus depreciation and the new allowance for “Qualified Production Property” will notably boost industrial development and redevelopment. This bill also permanently expands the LIHTC program, making affordable housing development significantly more feasible across the borough, particularly in areas with available land and a community need.
Despite political anxieties, strong market fundamentals persist. Multifamily demand remains robust across boroughs, driving growing rents and limited supply in the free market sector. Development is stimulated by “City of Yes” zoning reforms and the 485-x and 467-m tax abatements, encouraging new construction and office-to-residential conversions. The market is shifting from defensive to strategic capital deployment, focusing on location, asset quality, and adaptability.
The Queens 2025 Mid-Year Commercial Real Estate Trends report is available here.