Debt market, sovereign wealth softening yet to impact Manhattan market: report

Midtown office values trending 4 percent higher than last year

New York /
Oct.October 07, 2015 01:15 PM
 

A “slight softening” in segments of the debt market and withdrawals from sovereign wealth funds have yet to affect the Manhattan office market, real estate analysis firm Green Street Advisors said in its latest report Tuesday.

Office values in Midtown remained at all-time highs in September, “well above” their previous pre-recession peak in 2007, according to Green Street’s Midtown Manhattan Office Price Index. While Midtown office values held unchanged from August, they trended four percent above year-earlier values and 12 percent over their mid-2007 peak.

Green Street continued to cite “strengthening market fundamentals and strong investment sales demand” in the Midtown office market, while also noting that macro factors like global political unrest, stock market turmoil, oil prices and a strengthening dollar bear “close monitoring.”

However, the firm pointed to more recent “anecdotal evidence” suggesting a “slight softening in some segments of the debt market and withdrawals from select sovereign wealth funds.” It said such developments “do not yet appear to have extended to Manhattan real estate.”


Related Articles

arrow_forward_ios
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
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
R&B Realty's Aron Rosenberg and Maverick's David Aviram of Maverick with 28 West 36th Street and 32 West 39th Street (Google Maps)
Midtown landlord sues to stop foreclosure by Maverick
Midtown landlord sues to stop foreclosure by Maverick
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)
Apple snags more space at Vornado’s 11 Penn Plaza
Apple snags more space at Vornado’s 11 Penn Plaza
A photo illustration of SL Green's Marc Holliday (Getty; iStock; SL Green)
NYC offices get creative to lure workers back
NYC offices get creative to lure workers back
135 West 50th Street and Industrious co-founders Justin Stewart and Jamie Hodari
Industrious reaches deal for 60K square feet in Midtown
Industrious reaches deal for 60K square feet in Midtown
arrow_forward_ios

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

Loading...