NEW YORK CITY-Despite the concerns of some investors and market watchers, CRE in Manhattan appears to be thriving. Valuations for prime office properties in Manhattan are approaching levels established at the 2007 market peak and valuations for similar quality multifamily assets already have surpassed peak pricing, according to an office & multi-housing capital markets report released Monday by CBRE Global Research and Consulting. The report found that strong investor demand for top notch Manhattan office and multi-housing assets is expected to result in select properties trading at valuations surpassing their peak pricing levels of 2007.

Mark Godfrey, VP, CBRE’s valuation and advisory services group, tells GlobeSt.com, “There’s always demand for trophy assets in proven, gateway markets like New York. I think we’ve seen this before where New York outperforms rest of the country,” he says. “Mix the availability of capital with the lack of return of other investments and its simple math: demand is going to rise, which pushes prices up.”

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