Has the NYC Commercial Property Market Peaked?

The shine is off the Big Apple’s commercial property market, according to real estate professionals surveyed for the latest Gotham Commercial Real Estate Monitor published by the accounting firm Marks Paneth LLP.

Among the surveyed respondents, 62 percent believe the New York City commercial property market’s values have peaked, up substantially from 48 percent in a similar survey conducted three months earlier. Thirty-one percent believe values will rise in the next 12 months, down from 43 percent three months earlier, while 44 percent of executives believe values will hold steady, up from 31 percent three months earlier.

Sixty-four percent of respondents expressed optimism for the market’s prospects in the next year, but 84 percent felt the market is overvalued in comparison to other major global centers.

“Despite peak value concerns, the strength of Manhattan’s underlying economy and the robust demand for properties are enough to inspire optimism in the majority of New York City commercial real estate professionals,” said William Jennings, partner-in-charge of Marks Paneth’s Real Estate Group.