The Real Deal New York

Commercial execs see post-Sandy surge for Lower Manhattan

January 23, 2014 02:20PM

Lower Manhattan after Hurricane Sandy

Lower Manhattan after Hurricane Sandy

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