FINC 677 & LDEV 664: New York Real Estate prices are for real.

It always surprises me how high is the cost of Real Estate in New York.

Of course this could only happen in New York.

Source: Wall Street Journal

The 39th floor of the Pierre Hotel was recently leased for a monthly fee of nothing less than 500,000 U.S. dollars. The leaseable area is 4,786 square feet, has six bedrooms and 6½ bathrooms, including the Presidential Suite. According to Jonathan Miller, president of appraisal firm Miller Samuel,  this sets a record for New York City residential leasing.

And just the other day (December 10th), a 5,400 square feet pent house was leased for 19 million monthly payments. The deal was closed by an agent from the Corcoran Group. According to the Real Estate Agent Mrs. Benalloul, "large apartments are definitely in demand". 

New York is a high density city: 47,214 square feet for 19,378,102 people (as of 2010). The space in New York is certainly in demand and we know for sure that people pays a fortune for a small space... and even more than that for a large apartment as we see in the examples. But the question that will raise now is: for how long?