New York & Tri-State CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Green Street: Midtown Office is 20% Overpriced
Midtown Manhattan office properties look 20% overpriced compared to the major markets on the West Coast based on current pricing, Green Street Advisors says in a new report. The advisory firm draws that conclusion based on its launch of Atlas, an interactive mapping and analytics platform that grades about 6,000 zip codes on the metrics believed to be the dominant drivers of rent growth.
By comparison to Westside Los Angeles and San Francisco, Midtown’s long-term NOI growth is anywhere from 50 to 70 basis points lower. Green Street analysis shows that values on L.A. office properties have increased 20%, while those in Midtown declined by 6%.
“Green Street has had success at sector picking through our IRR-based sector allocation framework,” said the firm’s Andy McCulloch. “We have long aspired to extend that valuation framework down to the market level to help real estate investors make bets geographically.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
