While the residential real estate market is flat, New York's commercial property market has been galloping ahead.
In all of Manhattan, office buildings valued above $5 million are selling for $730 per square foot in 2007, up 18 percent from last year and up 143 percent from 2004, according to Real Capital Analytics. Meanwhile apartment prices fell 2.4 percent in 2006 and are down 18 percent this year. "Witkoff [Woolworth building owner] sees the improvements that are going on next door. Even if he's going to sell these as condos, it might make sense to lease them out as office space for 10 years first," said Dan Fasulo, managing director at Real Capital Analytics.