The Real Deal New York

From the March issue: After the credit crisis of late 2007, investment sales brokers worried that Manhattan office building prices might plummet, and were left to await the grim numbers. But the data is in — and it paints a picture that appears too rosy. Brokers are saying their anecdotal experience leads them to believe that prices have fallen 5 to 10 percent since the credit crunch hit last June. In some deals, sales prices came in 25 percent lower than asking prices. However, according to 2007 statistics provided by Real Capital Analytics, the price of office buildings rose more than 20 percent from the previous year, with a second-half increase — following the credit debacle — pushing the average up to $704.90 a square foot.