Fascitelli: U.S. commercial real estate rebound not as robust as it seems

TRD New York /
Feb.February 09, 2011 12:07 AM

The rebound in U.S. commercial property prices is outpacing that of commercial rents, painting an unrealistically optimistic picture of the market, Michael Fascitelli, CEO of Vornado Realty Trust, told a crowd at Manhattan’s De La Salle Academy yesterday. “I think we’ve bottomed, and we’re going in an upward trend,” Fascitelli said, but added that “the pricing is indicating a much more robust recovery in three to five years than I think we might have.” According to Reuters, Fascitelli cautioned that an inevitable rise in interest rates might soon stall that upward pricing trend, leaving landlords dependent on still-sagging rental income to maintain their property values. “I worry about rates spiking up without inflation in assets,” Fascitelli said. “You have to make the money by income going up. The risk is that you do OK on the front rentals for a while, but interest rate rises take all the juice away.” [Reuters]


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Steve Roth and Miki Naftali with 1167 Madison Avenue and 50 East 86th Street (Credit: Google Maps)

Naftali buys two vacated Vornado properties for $71M

Steve Roth and 512 West 22nd Street (Credit: Getty Images)

E-commerce company inks pricey deal at Vornado’s High Line office space

 Li Ge and 220 Central Park South (Credit: WuXi Biologics and Getty Images)

Biotech billionaire pays $26M for 220 CPS pad

220 Central Park South and Vornado chairman Steven Roth (Credit: Google Maps and Getty Images)

Another $60M condo closes at 220 Central Park South

220 Central Park South (Credit: Getty Images)

Vornado’s 220 Central Park South closes $64M condo sale

arrow_forward_ios
Loading...