Search
 

Malkin: RE is Very Much a Business of Cycles and Plateaus

NEW YORK CITY-Even most optimists are starting to consider the dreaded "r-word" to describe the current economic climate, particularly in light of yesterday's (Feb. 28) poor trading performance. Tony Malkin advises keep leverage low to withstand any economic threat to revenue.

By Amy Vaughn | Updated on March 01, 2001

NEW YORK CITY-In light of the mood shift on Wall Street from bull to bear market, GlobeSt.com has been tracking industry opinion of the possible impact of a recession on commercial real estate. W&M Properties’ president Tony Malkin shared his insights into the office and multifamily sectors and ways to protect oneself against economic trouble. With the bear market atmosphere on Wall Street yesterday (Feb. 28) the advice could prove necessary.

Many experts still insist the economy is merely in a softening period and a recession is not on the horizon, while others insist the recession is already here. On the stock market yesterday, likely in response to Fed chairman Alan Greenspan’s statements indicating a rate cut was not on his agenda before the Federal Reserve meets March 20, the Dow slipped 141.6 points, the NASDAQ slipped 55.99 points and the S&P fell 18 points. The S&P’s dip put it more than 20% below its high and the NASDAQ is almost 60% lower than where it was last year at its high.

Malkin, whose family-owned company owns and manages such properties here in Manhattan as 10 Union Square, 1010 Third Ave., 77 W. 55th St., the Gotham on Third Ave., as well as whose family holds interest in the Empire State Building and manages the partnership that owns the Fisk Building, tells GlobeSt.com, “The way we have looked at the cycle to prepare for a recession one must maintain low levels of leverage in one’s overall portfolio.” He says the industry is “very much a business of cycles and plateaus.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.