Andy Joynt
Real Estate Economist
Property & Portfolio Research
Boston
Even the industry can't believe its own success. Lastweek's Feedback Poll addressed the sensibility of a 94-year-oldbuilding going for $525 million--even if that building is the oldNew York TimesBuilding, and even if it is in the heart of the Big Apple.Despite size and location, 66% of our readers said that theindustry has finally jumped the shark on that one, while only 35%said it makes sense given market fundamentals. Commentator Joyntisn't quite so quick to throw in the towel on the sizzling market.Here's why:
"It certainly is getting very aggressive. From what Iunderstand, Tishman Speyer was pleased to get this price. I thinkthey were looking to get about $500 million. Africa Israel also sawit as a great opportunity, and I'm sure they've been studying theoutlook for the New York market. We tend to agree that, given thedirection this market is headed, if you do the renovations right,you could realize a good return on the investment.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
