SOURCE: Marks Paneth LLP

Marks Paneth LLP

January 07, 2014 10:30 ET

Commercial Property Execs Say Manhattan Commercial Real Estate Remains Overvalued -- But Poses No Outsized Risks to Investors, According to Marks Paneth Survey

NEW YORK, NY--(Marketwired - Jan 7, 2014) - Commercial property executives in the New York City market continue to believe Manhattan commercial real estate is overvalued compared with commercial property in other major global cities.

That's according to findings of the most recent Marks Paneth Gotham Commercial Real Estate Monitor, a periodic survey of more than 100 top New York commercial real estate executives, including owners and managers, brokers and agents and attorneys and accountants specializing in the space.

Thirty-eight percent of executives said Manhattan commercial real estate is moderately overvalued; 16% said it's highly overvalued, and 28% said it's fairly valued. These views are virtually unchanged from those expressed in two earlier surveys conducted within the last 12 months.

Despite their view that commercial real estate valuations are too high, property executives don't think there's significant risk in investing in Manhattan commercial property. Only 2% said there's a "high" risk associated with such investments, and 35% said there's a moderately low or low risk involved. Forty-eight percent characterized the risk as "moderate."

"The takeaway from the survey responses is that Manhattan commercial property seems very expensive, but when it comes down to it, the same could be said for a lot of things in New York -- you probably won't go wrong if you invest in it in the right way," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.

Methodology
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of over 100 top commercial real estate professionals in the New York City market. Professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents, and attorneys and accountants specializing in the sector. The inaugural survey was completed in January 2013 and the second in June 2013. The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth, the research sponsor. In addition, a link to the survey site was included in an online trade publication. Interviews were completed during the period of November 7-30, 2013.

To receive a copy of the Winter 2013 Marks Paneth & Shron Gotham Real Estate Monitor and/or to survey with one of the MP&S leaders who fielded the survey, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at Katarina@sommerfield.com or 212-255-8386.

About Marks Paneth & Shron LLP

Marks Paneth LLP is an accounting firm with over 500 people, of whom nearly 65 are 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 34th largest accounting firm in the nation and the 16th largest in the New York area. 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 fourth year in a row.

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

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