New York City Commercial Property Values Have Now Peaked, Property Executives Say in New SurveyDecember 4, 2015
Commercial property values in New York City have hit the ceiling, says a sizeable majority of real estate executives in a new survey by Marks Paneth, the accounting firm.
Seventy-one percent of property professionals in the city say values have now peaked. That compares with 54% of professionals who said this in the previous survey, several months earlier.
More specifically, 35% of executives say values will start declining, and 36% say they'll basically hold where they are. Only 21 percent say values will continue their rise.
That's according to Marks Paneth's latest Gotham Commercial Real Estate Monitor, a survey completed last month of over 100 New York commercial property owners, brokers, agents, engineers, accountants and lawyers specializing in the commercial space.
Even though real estate professionals are largely convinced that commercial values have reached the pinnacle of the current cycle, they're divided on what the effect of a Fed interest rate hike will be. Forty-six percent say a hike will put more downward pressure on values, and 35% say values will be unaffected.
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