NEW YORK CITY-Yesterday’s $800-million purchase of a majority stake in the Chrysler Building, first reported here in June, is one of a number of high-profile deals that are helping to define the current market, experts tell GlobeSt.com.

“There’s a new baseline for pricing being established for class A office in Midtown, which is a very healthy sign for the marketplace,” says Dan Fasulo, managing director and head of research for Real Capital Analytics. He says that baseline is about 10% to 15% lower than it was at the peak of the market. “That makes sense, because the tremendous amount of liquidity on the debt side created a 10% to 15% froth in pricing levels from the end of 2006 through mid-2007, and the froth has been shaken out.”

Fasulo adds that following “a huge disconnect” between buyers and sellers that hampered trading velocity over the past six to nine months, the big deals will help re-establish momentum. “Now that some of these properties are starting to trade and it’s very savvy investors who are making these purchases, the rest of the market will go forward at this new confidence level,” he says.

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