Analysts polled by Reuters had forecast a 1.0 % increase in December. The December index was 0.3 % higher than in the same month the year earlier.
Prices were pushed higher by a jump in sales of condominiums valued at $10 million or more, which skewed results, CityRealty, a real estate listings and data website for New York City, said on Wednesday.
New York commercial real estate last year had a better year than analysts predicted at the beginning of 2016 and the outlook suggests a growth cycle now in its seventh year still has legs, the brokerage said.
US builders boosted spending on construction projects for a second straight month in November, pushing activity to the highest level in more than a decade.
U.S. homebuilders' confidence soared this month to the highest level in 11 years, reflecting heightened expectations of better sales now and well into 2017.
U.S. retail mall vacancies in the fourth quarter were flat from the third at 7.8 percent, indicating that the retail real estate market is finally showing signs of a correction, real estate research firm Reis Inc said in a report.
The Commerce Department says home construction soared 25.5% to a seasonally adjusted 1.3 million in October.
The National Association of Home Builders/Wells Fargo builder sentiment index released Wednesday was unchanged at 63.
The Standard & Poor's CoreLogic Case-Shiller 20-city home price index rose 5.1% in August, after a 5% gain in July.
Leasing activity across Manhattan is 13.8% above the city's 10-year average, and year-to-date is 11.1% better than 2015, a banner year for commercial real estate in New York, the brokerage said on Thursday.
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