Midtown office values now 11% above 2007 peak: report

Despite stronger dollar, foreign investment continues to flow in: Green Street

New York /
Jul.July 08, 2015 03:55 PM

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.


Related Articles

arrow_forward_ios
Beaches, ponds, views: What water access costs in the Hamptons
Beaches, ponds, views: What water access costs in the Hamptons
Beaches, ponds, views: What water access costs in the Hamptons
Demir Sabanci and 41-47 West 57th Street (Sedesco, Google Maps)
Sedesco seeks floor area bonus for new Billionaires’ Row skyscraper
Sedesco seeks floor area bonus for new Billionaires’ Row skyscraper
11 East 26th Street with Henry and Justin Elghanayan (Google Maps, Getty)
Rockrose investment values Nomad office building at $235M
Rockrose investment values Nomad office building at $235M
An aerial of 341-347 Madison Avenue and Boston Properties CEO Owen D. Thomas (Google Maps, Real Estate Roundtable)
Boston Properties moves forward with teardown of ex-MTA HQ
Boston Properties moves forward with teardown of ex-MTA HQ
Extell sells One57 sponsor unit for $17M
Extell sells One57 sponsor unit for $17M
Extell sells One57 sponsor unit for $17M
135 West 29th Street and Kaufman Organization CEO Edward Hart (Google Maps, Kaufman)
Kaufman Org closes on $35M ground lease deal
Kaufman Org closes on $35M ground lease deal
425 Park Avenue and L&L’s David Levinson (Photos via 425 Park Ave, L&L)
After 2-year drought, 425 Park Ave snags new tenant
After 2-year drought, 425 Park Ave snags new tenant
(Photography by Sasha Jones)
Believe it or not: Ripley’s, Modell’s, Liberty Theater abandon 42nd Street home
Believe it or not: Ripley’s, Modell’s, Liberty Theater abandon 42nd Street home
arrow_forward_ios

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

Loading...