Real estate execs: NYC’s commercial properties are overvalued

But they're probably worth it

New York /
Jun.June 13, 2014 03:20 PM

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


Related Articles

arrow_forward_ios
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
Two Upper East Side apartment buildings head to foreclosure sale
Two Upper East Side apartment buildings head to foreclosure sale
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Resurrection! Work resumes on stalled Clinton Hill residential project
Resurrection! Work resumes on stalled Clinton Hill residential project
Resurrection! Work resumes on stalled Clinton Hill residential project
CRE held up through the pandemic far better than most expected (iStock)
How commercial real estate survived the pandemic
How commercial real estate survived the pandemic
Harbor Group grabs $558M in financing for Black Rock purchase
Harbor Group grabs $558M in financing for Black Rock purchase
Harbor Group grabs $558M in financing for Black Rock purchase
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...