By asset class, 38% believe office prices will rise this year, 42% believe they will be stable, while 18% see values will fall in 2016. On the residential side, 44% contend prices will continue to rise, 26% predict they will stabilize, while 26% forecast falling residential prices. For the retail sector, 39% of polled executives believe prices will rise, 25% are calling for stable prices, and 30% responded that retail prices will fall this year.

The New York City market should also continue to see foreign investment drive the New York City commercial real estate market. A total of 54% of respondents believe that foreign investment will increase in 2016. The breakdown includes 42% of respondents who forecast a moderate increase in foreign investment this year, while 13% expect overseas investment to increase sharply this year. A total of 22% of CRE executives believe foreign investment will stay the same for the next 12 months.

NEW YORK CITY—A vast majority of commercial real estate executives are bullish on the city's commercial real estate market in 2016. Likewise, an overwhelming number of CRE executives feel the city's commercial real estate is overvalued.

The latest Gotham Commercial Real Estate Monitor authored by accounting firm Marks Paneth reports that 64% of the 145 commercial real estate executives polled are optimistic about the city's commercial real estate market this year. Sixteen percent of respondents are very optimistic about the commercial market's prospects this year, while 48% penciled in their moderately optimistic view of the market this year.

William Jennings, partner-in-charge of Marks Paneth, notes, however, that when asked if they believe New York's CRE is overvalued, 84% answered “yes.” He notes that this year's view is 8% higher than poll results released in January 2015. “Almost one in three (31%) believe that CRE is now highly overvalued—a six-point uptick since 2015. Only 7% feel that NYC values are comparable to other major cities. In January of 2015, this number was 17%,” Jennings says. According to the survey, 53% have the view that the city's commercial real estate is “moderately overvalued.”

In terms of where prices will go, 31% think overall values will continue to rise, compared to 43% about 90 days ago. Most respondents believe that prices have peaked, but will hold (41%). This was 13 percentage points higher than what CRE executives felt just three months ago. The report states that 18% of those polled believe prices will fall.

By asset class, 38% believe office prices will rise this year, 42% believe they will be stable, while 18% see values will fall in 2016. On the residential side, 44% contend prices will continue to rise, 26% predict they will stabilize, while 26% forecast falling residential prices. For the retail sector, 39% of polled executives believe prices will rise, 25% are calling for stable prices, and 30% responded that retail prices will fall this year.

The New York City market should also continue to see foreign investment drive the New York City commercial real estate market. A total of 54% of respondents believe that foreign investment will increase in 2016. The breakdown includes 42% of respondents who forecast a moderate increase in foreign investment this year, while 13% expect overseas investment to increase sharply this year. A total of 22% of CRE executives believe foreign investment will stay the same for the next 12 months.