I’ll take Manhattan, the old song goes, but when it comes to making a buck on office real estate, you might take West L.A.
Based on recent capitalization rates -- net operating income as a share of the purchase price -- office buildings in New York are overpriced by 20 percent, on average, compared with those in major West Coast markets, particularly West Los Angeles and downtown San Francisco. That’s according to a report by the real estate research firm Green Street Advisors.