Owners & management · Deals & development · 10/21/2026
Brooklyn Tops Manhattan in Q3 Multifamily Sales, Ariel Report Finds
Ariel Property Advisors found Brooklyn led Manhattan, the Bronx and Queens in Q3 2026 multifamily dollar volume at $693.8 million. Manhattan below 96th Street fell 43.6% to $685.2 million. Through three quarters, the four boroughs saw $6.99 billion in sales across 1,044 deals, up 7.9% and 11.5% from last year.
Reported by Commercial ObserverRead the original ↗
What happened
Brooklyn led New York City in multifamily sales dollar volume in the third quarter of 2026, according to the latest quarterly report from Ariel Property Advisors, as reported by Commercial Observer on October 21, 2026. Brooklyn recorded $693.8 million in apartment building and other multifamily sales in July, August and September. That was a 12.8 percent drop from the third quarter of 2025. The number of Brooklyn sales rose 12.7 percent to 178.
Brooklyn edged out Manhattan below 96th Street, where dollar volume fell 43.6 percent year over year to $685.2 million on 58 sales, up 1.8 percent. In Upper Manhattan, above 96th Street, dollar volume grew 32.8 percent while sales fell 5.9 percent to 16. In the Bronx, dollar volume fell 5 percent to $123.5 million and sales dipped 9.7 percent to 28. In Queens, dollar volume rose 26.9 percent and sales rose 1.6 percent to 62.
Across the four boroughs Ariel tracks (Manhattan, the Bronx, Queens and Brooklyn), sales for the first three quarters of 2026 totaled $6.99 billion across 1,044 transactions. That was up 7.9 percent in dollars and 11.5 percent in deal count from a year earlier. The third quarter alone was weaker. Dollar volume fell 23.3 percent to $1.84 billion. There were four deals of $50 million or more, totaling $388.7 million, compared with eight such deals worth $999.2 million in the third quarter of 2025.
Buildings with 75 percent or more free-market units made up 63.1 percent of third-quarter dollar volume. Buildings with 75 percent or more rent-stabilized units made up 19.2 percent. Affordable housing made up 8.3 percent. Ariel founder Shimon Shkury said free-market and subsidized affordable properties with predictable cash flows continue to draw investors, while rent-stabilized buildings face significant valuation pressure from regulatory constraints and financing challenges. Ariel called the third quarter the year's weakest and said it expects fourth-quarter volume to rebound as contracts that stalled during a summer rate move push to close before year-end.
Key facts
- Source
- Ariel Property Advisors multifamily quarterly report, reported by Commercial Observer on Oct. 21, 2026
- Brooklyn Q3 dollar volume
- $693.8 million, down 12.8% from Q3 2025
- Brooklyn Q3 sales
- 178 transactions, up 12.7% year over year
- Manhattan below 96th St Q3
- $685.2 million, down 43.6%; 58 transactions, up 1.8%
- Bronx Q3
- $123.5 million, down 5%; 28 transactions, down 9.7%
- Four boroughs, first three quarters
- $6.99 billion across 1,044 transactions, up 7.9% and 11.5%
- Four boroughs, Q3
- $1.84 billion, down 23.3% year over year
- Q3 share by building type
- Free-market (75%+ units) 63.1%; rent-stabilized (75%+ units) 19.2%; affordable housing 8.3%
What it means
Buyers and owners
Ariel describes a split market. Free-market and subsidized affordable buildings are drawing strong investor interest, while mostly rent-stabilized buildings face valuation pressure. Owners weighing a sale of a heavily stabilized building should expect that buyer caution, according to the report.
Landlords
Brooklyn had more deals in the third quarter than a year ago but less total money changing hands, so more buildings traded at lower combined value. Ariel expects activity to pick up in the fourth quarter as stalled contracts close.
Tenants and voucher holders
The report covers sales activity, not rents or tenant rules, so it does not by itself change anyone's lease or rent. Tenants in buildings that change hands may see a new owner and new management company.
The highlights
- Brooklyn logged $693.8 million over 178 sales, down 12.8% in dollars from 2025.
- Mostly rent-stabilized buildings drew 19.2% of Q3 dollar volume; free-market 63.1%.
- Four-borough Q3 volume fell 23.3% to $1.84 billion; Ariel expects a Q4 rebound.
Why it matters Landlords
Ariel says rent-stabilized buildings face valuation pressure from regulation and financing, which matters for owners weighing a sale or refinance.
Not known yet
- Which Brooklyn buildings or neighborhoods drove the third-quarter sales
- Prices paid for rent-stabilized buildings compared with free-market buildings
- Upper Manhattan's third-quarter dollar volume figure
- Whether Staten Island sales were included anywhere, since Ariel tracked only four boroughs
Background
In New York City, a building sale generally does not end rent stabilization. Stabilized apartments stay regulated under the new owner, and existing leases carry over. Rent stabilization is administered by the state's Division of Housing and Community Renewal (HCR), and allowable increases on lease renewals are set each year by the city's Rent Guidelines Board. Owners of residential buildings with three or more units must register them with HPD each year, and a new owner is expected to update that registration after a purchase.
Summary written by Bulwark from Commercial Observer’s reporting. The original story is at commercialobserver.com. This is general information, not legal advice.
Related
Follow Bulwark on WhatsApp
Deadline countdowns, rule changes, voucher rents and breaking NYC housing news in your WhatsApp Updates. Free.
Send the message that opens, then save our number. WhatsApp only shows updates from saved contacts.
Brooklyn, NY
Want a manager who tracks this for you?
Rent, repairs, filings and deadlines handled, with one clear statement a month.
Photo: Andre Carrotflower, CC BY-SA 4.0