Commercial RE Execs' Faith in Lower Manhattan Property Values Begins to Return, A Year After Sandy,January 22, 2014
However, Property Execs Doubt Government's Conviction to Help Prevent Future Flooding
NEW YORK, NY--(Marketwired - January 22, 2014) -
As the physical effects of Hurricane Sandy fade away, the city's commercial property executives are finally reversing their negative view on the prospects for Lower Manhattan commercial property values.
In a recent survey of 100-plus top-level commercial real estate executives in New York City, only 6% said they believed property values in Lower Manhattan will drop this year. Just a half-year earlier, in June 2013, nearly a third of executives (32%) thought values would decline.
Importantly, the majority -- 51% -- believe commercial property in Lower Manhattan will get pricier this year, according to the most recent Marks Paneth Gotham Commercial Real Estate Monitor survey of top New York City commercial real estate professionals, including owners and managers, brokers and agents and attorneys and accountants specializing in the sector.
"Since Hurricane Sandy, Lower Manhattan commercial property had been a source of concern, or potential opportunity, depending on your perspective, for the city's commercial property leaders. Now, it seems, they're getting bullish on values," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.
Property Execs are Sanguine About Government's Commitment to Preventing More Flooding
"On the other hand, the commercial property industry seems to be somewhat skeptical about whether government will deliver on projects to minimize the potential for future flooding at the southern end of Manhattan," he added.
Fully half of executives (50%) said in the most recent survey they're "not confident" that there will be significant government effort to prevent future flooding.
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of over 100 top commercial real estate professionals in the New York City market. Professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents, and attorneys and accountants specializing in the sector. The inaugural survey was completed in January 2013 and the second in June 2013. The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth, the research sponsor. In addition, a link to the survey site was included in an online trade publication. Interviews were completed during the period of November 7-30, 2013.
To receive a copy of the Winter 2014 Marks Paneth Gotham Real Estate Monitor and/or to speak with a leader from Marks Paneth's Real Estate Group, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at Katarina@sommerfield.com or 212-255-8386.
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom nearly 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth, whose origins date back to 1907, is the 34th largest accounting firm in the nation and the 16th largest in the New York area. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the fourth year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com