NY-centric office real estate seen overpriced compared to West Coast

New York

I'LL take Manhattan, the old song goes, but when it comes to making a buck on office real estate, you might take West LA.

Based on recent capitalisation rates - net operating income as a share of the purchase price - office buildings in New York are overpriced by 20 per cent, on average, compared with those in major West Coast markets, particularly West Los Angeles and downtown San Francisco.