The Real Deal New York

Commercial execs see post-Sandy surge for Lower Manhattan

January 23, 2014 02:20PM

Top commercial real estate executives are substantially more optimistic about the value of property in Lower Manhattan this year, according to a recent survey.

Of more than 100 execs surveyed by accounting firm Marks Paneth and Shron, only 6 percent said they believe property values in Lower Manhattan will drop in 2014. Last year, nearly a third of the respondents forecast a drop in real estate prices for the area. The real estate group at Mark Paneth attributes the positive outlook to the recovery from Hurricane Sandy, according to a press release.

“Since Hurricane Sandy, Lower Manhattan commercial property had been a source of concern, or potential opportunity, depending on your perspective, for the city’s commercial property leaders, said William Jennings, a lead partner at Mark Paneth, in a press release. “Now, it seems, they’re getting bullish on values.” Lower Manhattan commercial real estate was boosted last year by an office building comeback that included a $1 billion lease from SL Green’s 388-390 Greenwich Street.

Half of the surveyed executives, however, were skeptical that the federal government would chip in to prevent future flooding in the area. [IT Business Net] — Angela Hunt