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GlobeSt.com Survey: Overall Values Will Stagnate

NEW YORK CITY-In the latest poll of GlobeSt.com readers, a surprising majority said most new business are popping up in suburban markets and most predicted that real estate values will stagnate in 2001.

By Amy Vaughn | Updated on April 12, 2001

NEW YORK CITY-GlobeSt.com’s Quick Survey has found only 29% of respondent had a positive outlook for real estate values going forward this year, while an overwhelming 71% of the answers ranged from a status quo perspective to gloomy. Alan Desino, senior managing director with Insignia/ESG, comments on the findings, saying clearly in the short term there will not be increases in valuation, and that even class A properties are feeling a “slight downward pressure.”

Desino explains that the issue of real estate values is “bifurcated–it really depends on the quality of space. B, C, loft and less traditional spaces have been hit very hard. Clearly their values have already decreased. Traditional class A properties continue, for the most part, to be well-leased, with low vacancies.

“For the most part they have held their rental rates,” he continues, “and been able to maintain their value. Concessions are up across the board, though and we’re seeing deals more in favor of the tenant now.”

Also, despite publicity about the return to urban centers, industry experts told GlobeSt.com with 64% to 36% that new business are locating in the suburbs. Critics of suburban sprawl seem to be losing the fight, according to the respondents here.

Despite the push to the suburbs, respondents did rank their favorite and least favorite cities for real estate investments. New York City was the favorite with poll participants, with 13% of the vote for best city for real estate investment.

Detroit was voted the worst city for investment by 14% and San Francisco, the city once on fire with Silicon Alley activity, was a close second for worst with 13% voting against it.

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