NEW YORK — A survey by a local accounting firm expects turbulence for Times Square commercial real estate. With new office space opening in the neighborhood and some big existing tenants moving out, two-thirds of real estate executives (67 percent) say it will be a challenge to bring new tenants there.
That’s according to accounting firm Marks Paneth’s latest Gotham Commercial Real Estate Monitor, a recently completed survey of over 100 New York commercial property owners, brokers, agents, engineers, accountants and lawyers specializing in the commercial space.
“The real estate community seems to believe that as more Times Square commercial real estate becomes available, tenants will be reluctant to move there – largely because of the perception that the neighborhood is chaotic and overrun with tourists,” says William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.
Looking elsewhere on the West Side, the giant Hudson Yards project draws mixed reviews. Just under half (49 percent) of the property executives say it’s too soon to tell whether the project will be a success. Thirty-seven percent think it will be, and 12 percent say it has challenges.
But the executives were most likely to choose Hudson Yards as the New York City mega-project that will have the most positive long-term impact on real estate values in its neighborhood – 46 percent picked it, compared with 25 percent who picked the Second Avenue Subway and 23 percent who named the Long Island Rail Road at Grand Central. Only 6 percent chose the World Trade Center site.