Profimex Market Review Update – April 8, 2021
It Was Worth $119M In 2015. Now This NYC Fifth Avenue Property Is Valued At $37.8M
According to a The Real Deal report, the value of a nine-story retail and residential building, which was once occupied by Domenico Vacca, was $119M. The property, located on 15 West 55th Street lost almost 70% of its 2015 value and is now worth only $37.8M. Robin Abrams, Compass Vice Chairman however believes that the value decline may be partially repaired as New York City emerges from the pandemic. “If you’re valuing based [on] much-reduced Covid rents and/or vacancy, then the numbers are going to be substantially down versus looking at things a year or two post-Covid when rents will somewhat recover.”
Almost 25% Of LA Office Space Was Available For Lease In Q1 2021
The new Savills office report revealed that as much as 23.6%, or 216.4 million square feet of office space is available in Los Angeles as of the first quarter this year. This vast vacancy rate is even higher than that during the crisis in 2009. However, the city’s average vacancy rate varies between the different submarkets. Whereas Santa Monica and Fox Hills currently experience vacancy rates of 30.4% and 36.7%, respectively, the lowest rate of “only” 7.8% can be seen in Burbank, a submarket that houses large studios, such as Netflix, Disney, and Warner Bros.