Commercial real estate executive's faith in lower Manhattan property values begins to return, more than a year on from hurricane, according to survey by Marks Paneth

As the physical effects of Hurricane Sandy fade away, the city's commercial property executives are finally reversing their negative view on the prospects for Lower Manhattan commercial property values. In a recent survey of 100-plus top-level commercial real estate executives in New York City, only 6% said they believed property values in Lower Manhattan will drop this year. Just a half-year earlier, in June 2013, nearly a third of executives (32%) thought values would decline. Importantly, the majority -- 51% -- believe commercial property in Lower Manhattan will get pricier this year, according to the most recent Marks Paneth Gotham Commercial Real Estate Monitor survey of top New York City commercial real estate professionals, including owners and managers, brokers and agents and attorneys and accountants specializing in the sector. "Since Hurricane Sandy, Lower Manhattan commercial property had been a source of concern, or potential opportunity, depending on your perspective, for the city's commercial property leaders. Now, it seems, they're getting bullish on values," said William Jennings, partner-in-charge of the Real Estate Group at Marks Paneth. Property Execs are Sanguine About Government's Commitment to Preventing More Flooding "On the other hand, the commercial property industry seems to be somewhat skeptical about whether government will deliver on projects to minimize the potential for future flooding at the southern end of Manhattan," he said. Fully half of executives said in the most recent survey they're "not confident" that there will be significant government effort to prevent future flooding.