From the NY Times:
There are 920 football fields of available office space in Manhattan. More than 180 major buildings totaling $12.5 billion in value — from Columbus Tower at 1775 Broadway to the office tower 400 Madison Avenue — are in trouble, meaning in many cases they face foreclosure or bankruptcy, or have had problems making mortgage payments. Rents for commercial office space fell faster over the past two years than in any such period in the last half century.
More than half a dozen experts on commercial real estate in New York City said that despite some flickering signs of economic recovery here and elsewhere in the country, the universe of big buildings and giant apartment complexes has further to tumble.
Rents, they say, will go lower. Vacancy rates are likely to rise, too. Owners of troubled properties will face a final day of reckoning and in some cases lose their properties.
The Real Deal also says that downtown office vacancy rates may increase 64%.
10 comments:
This is like deja vu all over again.
- Yogi Berra.
Remember the last crash which began in fall '89 lasted 'till 1995.
During that era pundits stated "authoritatively" that there was a "35 year supply" of vacant office space.
By mid '00s the leeches (landlords) were fat with blood from a tight market.
This time is no different, it'll just take a little longer and the leech will have to be a little more reasonable.
The Economost just had a feature on the 'Bubble Economy' highlighting a recovery mostly underpinned by cheap government money used to underpin the system - something that will soon stop.
Add to this built in deficits equal to last year's binge starting in two or three years as we (somehow) try to repay the debt
Add to this the risk of soveign defaults (that seem to come in spurts every few generations)
Add to this a sharp (unreported) jump in inflation (from postage stamps to subway fare, to health insurnace, etc) sapping economic health
And it should get really interesting.
Time to move to a shadowy off shore tax haven, gather a team of fraudsters and "sail the wide accountan-cy."
Maybe they can let the people made homeless by the bubble burst live in the empty office space!
Explain to me what's changed in New York that makes it more attractive for an regional, national, international business to locate (or relocate) in New York from 1995, or 2001, or 2005.
The contraction/expansion of the business cycle only works when you don't lose ground to other locales. New York is not competitive.
HAHA and Vornado kicked Tower records out so they could get more $$$ for the spaces
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Rents for commercial office space fell faster over the past two years than in any such period in the last half century.
And the Virgin Times square store...is it still empty?
wow we wow ,we unemployed only have to starve another five years,according to Lino the liberal loyalist.
he also says that the U.S. is in a post war recession,when a democratic ,socialist president (obama) just ordered 30,000 U.S. troops to the Afghan area.
more peace prize please.
give a shout out for 8% unemployment. not.
state governments unemployment is 3.6%. private sector 7.9 to 11 to 22.7. n.y. state 10.2% .
the U.S. electorate is not buying your B/S.
"he also says that the U.S. is in a post war recession,when a democratic ,socialist president (obama) just ordered 30,000 U.S. troops to the Afghan area."
Thick as a brick, aren't ya.
"wow we wow ,we unemployed only have to starve another five years,according to Lino the liberal'
Well, that is the good republican thing to do, stay off that socialist unemployment insurance.
You ain't unemployed due to the recession..you were fired for being stupid.
Sorry anyhow..hope things get better for you.
you remain a consistent liberal loyalist by refusing to
debate your marxist leader's failing policies. and your misinformation comments on this website.
my family lives quite secure in a private home and substantial income ,earned during an era of U.S. CAPITALISM. wise planning and frugal spending has enhanced our retirement.
your Marxist/Saul Alinsky trained leaders should take this advice too.
shame,shame,shame on you for attacking the recently unemployed. your support of this ADMINISTRATION will cause them extreme additional harm. the electorate will punish democratic socialists soon.
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