Commercial property in New York City is overpriced compared to its counterparts elsewhere in the country. But, it’s probably worth it.
That was the conclusion drawn from a recent poll from the spring 2014 Gotham Commercial Real Estate Monitor, which surveyed New York City’s top commercial real estate professionals.
According to the survey, 47 percent of owners, brokers, agents, attorneys and accountants specializing in the commercial real estate sector, said that commercial properties in New York are “moderately overvalued” in comparison to property in other major cities, GlobeSt reported.
About a third of the execs felt that low interest rates were to blame for the over-the-top pricing, which they said is creating an asset bubble within the commercial market comparable to the housing bubble of 2005 to 2007.
Still, the majority of those polled said that in spite of the high expense, commercial property in Manhattan is a sound investment, with only four percent of executives citing it as a “high risk” endeavor. [GlobeSt] — Sasha von Oldershausen