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

“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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.