Midtown Manhattan office values remain at “all-time highs” and well above their previous peaks in 2007, according to a new report from real estate analytics firm Green Street Advisors.
Office properties in Midtown are benefitting from “strengthening” market fundamentals and “robust” capital flows – with Green Street noting continuously strong foreign investment demand for such properties despite a stronger dollar and declining oil prices.
While property values held flat in June from the previous month, Green Street cited a 12 percent year-over-year increase and an 11 percent increase from the previous peak in mid-2007, according to its Manhattan Office Price Index.
The firm also pointed to “no evidence” that fears over rising interest rates have impacted market values, despite bond yields having recently increased versus the historic lows of several months ago. And news reports this week about global economic turbulence suggest the Federal Reserve could wait longer before raising short-term rates.
On the leasing front, Midtown office availability dropped to 9.6 percent at the end of the second quarter – below 10 percent for the fourth consecutive quarter, according to commercial brokerage DTZ’s most recent report.