The Real Deal New York

NYC apartment complexes worth 35% more than in 2007: Morgan Stanley

Real estate rebound favoring some assets over others
November 21, 2014 04:57PM

Owners of residential towers and Downtown office buildings are seeing great benefits from the real estate rebound, but those who own suburban office buildings are still struggling to cope with low prices, according to a Morgan Stanley analysis of commercial real estate prices.

Morgan Stanley analysts say apartment complexes in cities like New York are worth 34.6 percent more than they were in Dec. 2007, and office values are up 27.9 percent, according to a new report cited by the Wall Street Journal. But suburban office buildings and retail properties outside of major metropolitan areas are 23 percent below Dec. 2007 levels; hotels are down 30.8 percent.

Morgan Stanley’s Richard Hill told the newspaper that “people get too caught up” in the national index’s improvement and overlook struggling suburban markets. [WSJ] — TRD