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Wall Street's Post-Election Jitters Reaffirm Fears of Economic Correction

NEW YORK CITY-While signs that the shine of the wild and lucrative ride is wearing off, the question in this industry turns to property. Many say demand is still high enough.

By Amy Vaughn | Updated on November 10, 2000

NEW YORK CITY-Word that eight lawsuits were filed in Florida over the election ballots was among election-related news that sparked a downward decline of the market on Wall Street yesterday. Trading closed with the Dow down 73, after having dropped 288 points around 2 p.m. and rallied a bit later. The Nasdaq closed 31 points down as well. These are only two signs that the economic golden days are drawing to a halt. The impact on commercial real estate has become the focus of panel discussions, water cooler talk and chatter on the overcrowded commuter rail trains to and from the city daily.

Standard & Poor’s was also down, ending the trading session with a loss of 9.14 points. Concern about increased heating costs this winter have some fearing rents will rise as owners pass off costs to tenants. Wholesale inflation was up last month, in part because of the rise of the cost of gas, by 0.4%. The producer price index was also up 0.4% last month. Energy prices rose last month 1.4%.

As Priceline.com, among other dotcoms, continues to struggle, and e-businesses like Pets.com join Urbanfetch.com on the landscape of defunct companies, the predictions of the majority of panelists in the real estate industry who spoke at the PACT conference last Monday (covered here) have increasing weight. Speakers such as Joe Fitzpatrick of Project Octane noted, “a shakeout is eminent.”

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