With deals such as Forbes' lease of 60,520 sf at 90 Fifth Ave., neighborhoods such as Chelsea, traditionally known as a primarily residential area, are seeing more office action in this tight market. In November, the Grand Central sub market remained the strongest with almost 900,000 sf of transactions taking place.

Cushman & Wakefield this fall released its forecast for 2001, predicting vacancies to increase in Midtown, representing “a frictional increase” rather than a softening market. Midtown South will continue to grow as a solid market and Downtown rental asking rates are likely to continue to rise, according to the forecast. The C&W report reflects a continued confidence in the office market in the city.

In fact every industry expert with whom GlobeSt.com has spoken about the office market as the year comes to a close has expressed concerns about the economy, but continued confidence in the city's office market. The limited amount of space, continued job growth, surpassing national figures, expansion of existing space for growing companies and the prestige associated with many addresses here, will continue to fuel the market, according to insiders.

To further seal the Big Apple's position, many point to the official signing of a deal between the New York Stock Exchange and the city and state last week. The Exchange will have a new, modern trading complex on Wall Street, which will receive more then $600 million in subsidies.

The block, bounded by Wall, Broad and William Streets, as well as Exchange Place, will become home to a 10-story trading complex with a 1.3 million sf office tower on top. The city has agreed to acquire the site from Rockrose Development Corp., which owns the apartment building at 45 Wall Street, and J. P. Morgan, which owns the rest of the block, by June 30, 2001. The city has also agreed to have the complex and office tower completed by 2005.