Mayor de Blasio's Plan to Increase Affordable Housing Stands to Hurt Commercial Property Values
June 23, 2014NEW YORK, NY--(Marketwired - June 23, 2014) -
The New York City commercial real estate community's lukewarm response to Mayor Bill de Blasio continues, according to the results of the spring 2014 survey of city commercial property executives by accounting firm Marks Paneth.
When asked about the potential impact of the mayor's plan to increase affordable housing in New York, executives were most likely to say it will weaken commercial property values (42%) in the city, according to the most recent Marks Paneth Gotham Commercial Real Estate Monitor, a survey of top New York City commercial property owners, brokers, agents and attorneys, accountants and other professionals specializing in the sector.
Only 11% of the executives said the affordable housing plan would strengthen commercial property values. Thirty-one percent said it would have no impact, and 16% said they were unsure of the impact.
The overall view of the mayor by commercial property executives: More than three quarters either said they're "not at all confident" (38%) the mayor will support the interests of commercial property owners in New York or "not too confident" (38%) that he will. Only 17% are even "somewhat confident" of the mayor's support for the commercial property industry.
"Clearly, the city's commercial property industry is adjusting to an environment in which overwhelming mayoral support may not be forthcoming," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.
In the Winter Gotham Real Estate Monitor survey, in November 2013, before Mayor de Blasio took office, executives expressed approximately the same lack of confidence in his potential support. By contrast, the vast majority -- 76% -- of commercial real estate executives gave Mayor Bloomberg high marks for his support in an earlier survey.
To receive a copy of the Spring 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.
Methodology
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of nearly 100 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 research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of March 3rd to May 7th, 2014.
About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom approximately 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 LLP, whose origins date back to 1907, is the 33rd largest accounting firm in the nation and the 10th largest in the Mid-Atlantic region. 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.
Contact:
Katarina Wenk-Bodenmiller
Sommerfield Communications, Inc.
(212) 255-8386
katarina@sommerfield.com
