If the high bid is accepted, it would be the most expensive price ever paid for a single building in U.S. history. The previous record was the $1.8 billion paid for the nearby 666 Fifth Avenue, a sale that closed in January 2007.I think some real estate companies have been beat up recently in anticipation of a repeat of the housing market in the commercial real estate market, which I think is overly exaggerated. However there will be some deterioration in commercial real estate prices but it would not be a big event. So there might be some bargains in this space going forward.
February 19, 2008
Commercial Real Estate
A follow up to my yesterday's post to the value of the commercial real estate have is the record level bidding for the GM building in NY. The building got over $3 Billion offer a record level for any building sold in NY. The building was bought for $1.2 billion few years ago and have undergone some modification, namely the addition of the Apple store. The wall street journal reports: