News & Noteworthy

Article - Bruce Bronster Explains Rise in NYC Commercial Property Prices in Law360 Article
AUGUST 16, 2013

Law360 quoted Bruce Bronster (Partner, New York) in an August 15th article entitled "Lack Of Inventory, Not Overvaluation, Spurs NYC CRE Prices" (subscription required), which details the rise in price of commercial properties in New York City.

Bruce, explaining that this trend is more likely due to a supply shortage than overvaluation, was quoted as saying the following:

  • "In New York there's an incredible dearth of developable land. That is going to drive values up because of all of the demand; you can't build from the ground up."
  • "Buildings are trading for high-dollar amounts because that's what people are willing to pay to own the relatively rare commodity of a piece of property in New York City."
  • "Investors are 'valuing for the long haul' even on non-trophy properties."
  • "What we have now is interest rates so low and optimism so high in New York that people don't even need big returns; they're looking for future growth to support their investment strategy."

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