Lower Manhattan experiences property value depreciation

Manhattan was negatively affected by Hurricane Sandy.

There may be some property management companies concerned about the commercial real estate situation in Lower Manhattan, as the effects of Hurricane Sandy still linger.

Nearly 60 percent of local industry members noted that the hurricane hurt property values in the area, according to a survey compiled by Marks Paneth & Shron, a local accounting firm. More than one-third explained that there will be an effect on property values in the neighborhood this year due to the storm. Another 20 percent noted that the valuations in this part of the city are permanently affected by this incident.

“There’s a strong view that Lower Manhattan’s commercial real estate market is almost as damaged as some of the buildings there,” said William Jennings, partner-in-charge of Marks PanethShron’s real estate practice. “Whether this presents an opportunity or significant liability for tenants and investors depends on your vantage point and time horizon. It’s clearly not great news for owners right now.”

The hurricane hit the Eastern Seaboard in late October and nearly 150 people were killed, according to LiveScience. Of that figure more than 40 deaths occurred in New York.

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