After Manhattan’s Office Boom, a Hard Fall
The New York Times reports: Just as office towers appreciated in value faster in Manhattan than elsewhere during the boom years, now their decline is outpacing the rest of the nation, brokers and analysts say.
One office tower, 450 Park Avenue, at 57th Street, changed hands for nearly $1,600 a foot. These extravagant prices were based on the widely held belief that as leases expired, many spaces would fill up at rents well above $100 a square foot.
So what are Manhattan office buildings worth today? Since no substantial transactions have taken place in recent months, no one knows for sure. In the absence of significant deals, many people in the industry say it is impossible to gauge how far values have declined. “The true answer about where prices are right now is, ‘I don’t know,’ ” said Robert M. White, the president of Real Capital Analytics, a New York research company.
View the full article on The New York Times: After Manhattan’s Office Boom, a Hard Fall
Posted by: Nina Turner