A new report released recently stated that due to rising prices, the commercial real estate industry is experiencing its strongest year since 2007.
According to the report, New York City building sales are due to reach $52bn for 2014, which is an increase of more than $12bn, compared to last year.
This growth in price has been boosted by foreign investment interest in Manhattan real estate. Foreign investors view New York as a safe haven for their investments.
The president of commercial brokerage at Massey Knakal Realty Services, Bob Knakal, said New York City real estate has become the same to investors what a Swiss bank account has offered them all these years.
He said asset preservation is the main driver.
The average price for a New York City commercial property reached $1629 per square foot during the third quarter, despite the decline in the volume of sales. This represents a 24% increase during the past 12 months. For the very first time, the price for a square foot of prospective development sites reached $300.
Manhattan prices saw a dramatic increase, resulting in a rise of 24% compared to last year. The prices increased by 14% and 15% in Brooklyn and Queens, respectively.
10 OCTOBER 2014, USA
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