This week, during the New York University Schack Institute of Real Estate Capital Markets in Real Estate Conference, experts noted that office building values in lower Manhattan are likely to take a turn for the worse as a result of the damage inflicted by Hurricane Sandy.
The growing concern of flooded buildings is projected to make the real estate prices in the area suffer, according to chairman and CEO of the conference, Howard Lutnick.
Nearly 500 of his employees will be unable to return to the three floors that comprise their office space at 199 Walter Street – and he anticipates his business to be out of commission at this location for the next six weeks to two months. While waiting out repairs and cleanup, his employees are sharing cramped quarters at his company’s midtown offices.
Hurricane Sandy caused almost 101 million square feet of the downtown building to be either closed, powered by generators, or flooded and without heat altogether. Lutnick expects downtown landlords to have to make more accommodations in the future in order to get their tenants to renew leases and attract new clients to sign on.
In order to prevent disasters similar to Sandy from occurring in the future, real estate experts expect regulatory and zoning alterations to be made to create buildings in safe locations that are constructed to withstand natural disasters.
Money for such endeavors will have to be pulled from both the private and public sectors in order to truly move forward in thwarting potential disasters from ruining real estate and having a negative impact on the market.
If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!