NEW YORK, NY--(Marketwire - Mar 5, 2013) - What's the next Flatiron District, i.e., the next trendy, expensive place to office in New York? It will be the once-gritty West 30s/Garment Center.
That's what leading New York City real estate executives said in a new survey conducted by accounting firm Marks Paneth & Shron LLP (MP&S).
The greatest percentage of commercial property executives (24%) named the Garment Center/West 30s as the "next hot area where office rents will skyrocket." The next greatest number -- 17% -- chose the Grand Central area, followed by Hells Kitchen/Far West Side, (selected by 15%) and downtown Brooklyn (12%), according to MP&S's Gotham Real Estate Monitor, a survey of more than 100 top New York commercial real estate owners, managers, brokers, agents and other professionals in commercial property.
"Perhaps sooner rather than later we will see more upscale restaurants and retailers populating the Garment Center, which will in turn draw in up-and-coming executives in new, booming industries," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth & Shron.
Interestingly, only 11% of executives said the Financial District/World Trade Center/Battery Park City is the next hot area, despite the Freedom Tower and Fulton Center developments under way. And only 8% chose the white shoe "Plaza District" in northeast midtown.
Which major development projects will have the biggest, positive impact on property values in their vicinities?
Only 8% of commercial property executives said the Freedom Tower (World Trade Center redevelopment) would have the biggest impact on surrounding property values. The largest group -- 44% -- named the planned Hudson Yards project on the far West Side in the 30s. A quarter said the Long Island Railroad access to Grand Central will be the project with the biggest commercial property value impact, and 24% said it will be the Second Avenue Subway.
Relatedly, real estate executives believe Hurricane Sandy has had a significantly negative impact on commercial real estate in Lower Manhattan. Most -- 56% -- said commercial property values there will either be permanently lowered or at least lowered in 2013 as a result of the storm and its damage. Many (19%) said existing commercial tenants will look to relocate from Lower Manhattan when their leases expire, and nearly half (47%) say property owners will be forced to lower rates and offer incentives to retain existing tenants.
The Gotham Commercial Real Estate Monitor from Marks Paneth & Shron represents the findings of a survey of over 100 top commercial real estate professionals in the New York City market. They included owners and managers of commercial property and commercial real estate brokers, agents, attorneys and accountants specializing in the sector. The research employed a dual-mode methodology of self-administered questionnaires completed either online or on paper by respondents. Interviews were completed between November 16, 2012, and January 4, 2013.
To receive a copy of the Winter 2013 Marks Paneth & Shron Gotham Real Estate Monitor and/or to speak with one of MP&S's real estate 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 & Shron LLP is an accounting firm with over 500 people, of whom approximately 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 & Shron LLP, whose origins date back to 1907, is the 32nd 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 MP&S as one of the area's top forensic accounting firms for the third 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.