The Manhattan office market finished off 2017 with the best 4th quarter since Q4 2014 but the lowest overall sales volume in 5 years, $11.4 billion. The predicted decline in Chinese cash flow has also made its mark on the Q4 sales volume, Asian investment bottlenecking at $624.3 million traded, among Unizo Holdings’ $467.5 million deal for 685 3rd Avenue and Investcorp’s $156.8 million buy of 229 West 36th Street.

With slowed sales activity in 2017, the decrease in sales volume was largely attributed to a decline in supply, Manhattan remaining an appealing destination for investors. The quarter’s top transaction – $840 million – was inked by SL Green Realty in joint venture with RXR Realty for the purchase of Worldwide Plaza.

Average price per square-foot closed at a steady $729, a 16% drop Y-o-Y, the lowest average since Q4 2013.

Though 16.1 million square feet of office are underway for completion, only one construction project was delivered in 2017, the 230,000 square-foot Bridge at Cornell Tech. Several renovation projects were also completed, including Stellar Management’s One SoHo Square and Vanbarton’s 45W45. Currently under construction, Hudson Yards and Manhattan West are all close to being fully leased, except for 50 Hudson Yards, where there still are approximately 2 million square feet of available office space. Another notable development, Tishman Speyer’s The Spiral, will add an additional 2.8 million square feet of office to the market.