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I heard that lofts will trade at a 5% to 10% premium to non-loft apartments due to their uniqueness, open layout and high ceilings. I suspect that the premium should be higher, closer to 15% or 20% since lofts aren't really being made anymore. After all, an apartment is only a loft if it technically was converted from prior industrial use. So loft apartments in NYC are not exactly being made anymore. Loft apartments in NYC therefore are more of a collector's item and should trade much higher. Plus, loft apartments in SoHo, Meatpacking or TriBeCa are former artists studios and are usually quite large homes. As a result, you might see 10 units in a building vs 100. Definitely should trade higher. Thoughts?
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Lofts should indeed trade at a premium given all the extra ceiling height and feeling of space you get in a loft apartment vs one with only 8 foot ceilings. With that said, you still have to be reasonable. Square footage is square footage. So what's the right premium? My guess is as good as anyone's, but I'd say closer to 15% to 20% for a unique loft with 13 to 20 foot ceilings. I mean if it's really above 13 or 14 feet you could theoretically make a raised sleeping alcove or duplex second level. That's kind of extra square footage right there no? Or at least book shelves or other storage shelves or cabinets can easily be installed on the upper level of a loft for more space. So there is real value there.
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