SOURCE: Marks Paneth LLP

Marks Paneth LLP

February 23, 2015 10:30 ET

Bullish on Brooklyn: Real Estate Executives Expect Technology to Boom in the Borough, Think Its Office Space Market Will Grow

Professionals Don't Think One World Trade Center Will Have Much Impact on Surrounding Property Values, According to Marks Paneth Survey of NY Commercial Real Estate Executives

NEW YORK, NY--(Marketwired - Feb 23, 2015) - Commercial real estate executives are increasingly bullish on Brooklyn: Three-quarters (74 percent) expect continued office space growth.

Looking at a corporate upsurge including JP Morgan's planned move of 2000 employees to Brooklyn, they agreed that "Brooklyn will be a serious contender for New York City office space in the coming years."

But a sizable number (16 percent) don't feel that way. They think growth will soon stagnate, agreeing that "Brooklyn won't be able to expand its market for Class A office space."

Those are among the results of the Fall 2014 Gotham Commercial Real Estate Monitor survey by accounting firm Marks Paneth. Responding were 124 top-level real estate executives, including owners, brokers, agents, engineers, accountants and lawyers specializing in the commercial space.

"While confidence isn't universal, the vast majority of professionals see Brooklyn as a growth opportunity," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.

Technology is expected to play a major role in the borough's fortunes. The survey shows a surge in optimism that the Brooklyn Navy Yard will become a tech center. Twenty-nine percent of real estate executives think the Navy Yard is the "next hot neighborhood" for commercial leasing to technology businesses. That's a 13-point increase over the Summer 2014 survey.

Optimism for the Navy Yard as a technology center has placed it ahead of all other neighborhoods as a tech hotspot: In the survey, it has outstripped the previous favorite, Long Island City, which gets the vote of 25 percent of the executives. There's also a groundswell in favor of Downtown Brooklyn -- 14 percent say it's the next hot tech neighborhood, up eight points (more than double) from June.

One World Trade Center Not Expected to Boost its Neighborhood

What major project do executives think will have the biggest positive impact on property values in its neighborhood? It isn't One World Trade Center.

The Hudson Yards will have the most positive long term impact, say 39 percent of professionals. The Second Avenue Subway ranked just behind (30 percent), followed by Long Island Rail Road access to Grand Central Station (24 percent).

By contrast, the One World Trade Center barely registered. Only seven percent think the new World Trade Center tower will have the most positive long-term impact on commercial property values in its neighborhood.

To receive a copy of the Fall 2014 Marks Paneth Gotham Real Estate Monitor and/or to speak with a leader from Marks Paneth's Real Estate Group, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at Katarina@sommerfield.com or 212-255-8386.

Methodology
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of commercial real estate professionals in the New York City market. The 124 professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents, and attorneys and accountants and other professionals specializing in the sector. The research employed self-administered questionnaires completed online and on paper by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of November 6 to December 1, 2014.

About Marks Paneth
Marks Paneth LLP is an accounting firm with more than 550 people, including over 70 partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.

The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth, whose origins date back to 1907, is the 33rd largest accounting firm in the nation and the 10th largest in the mid-Atlantic region. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top three forensic accounting firms for the fifth year in a row.

Its headquarters are in Manhattan. Additional offices are in Washington, DC, Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.

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