If you’re thinking about investing in commercial real estate in Manhattan, or if you’re ready to sell your property, it’s important to have a good understanding of the market value of commercial real estate in the area. Below, we’ll explore some of the factors that influence the cost, as well as the average cost per square foot.
Factors Affecting Cost
A number of factors can affect the cost of real estate, including:
- Location – Very central, prestigious locations will, on average, cost more than less central locations. For example, the average cost of buildings in Midtown is higher than the overall average.
- Building class – Buildings are divided into Class A, Class B, and Class C. Class A buildings are modern skyscrapers, or very prestigious buildings like the Chrysler Building. Class B buildings are older, but updated to be modern. Class C buildings may be run down and located in less desirable areas.
- Market fluctuations – Over time, the market fluctuates. The average commercial real estate prices this year are likely to be different from next year’s, based on a variety of factors.
- Usable space – Depending on the layout of an office space, it may be the case that not all of the space is usable. This effectively increases the cost per square foot of the usable space.
- Additional costs – Additional cost like building fees, taxes, and utilities can boost the overall costs associated with the real estate, so be sure to take these into consideration.
In 2013, the average cost per square foot of commercial real estate in Manhattan was $703. This was a significant increase from years prior, and certain areas saw a bigger boost than others.
Buying Commercial Real Estate
When you’re buying real estate in the city, it’s a good idea to do so with the help of a broker and other real estate experts. These people can help ensure that you find a high-quality space that’s being offered for a fair price and which meets your needs.
To schedule a consultation with New York City’s top real estate experts, please click below and enter your information or call Handler Real Estate Organization at (212) 398-1888.