Lynn says there are too many variables in the marketplace right now to judge if and how much Sept. 11 will continue to impact New York real estate. "There are a lot of factors in play," Lynn says. "In the short term, Sept. 11 is going to affect New York City pretty hard because you've lost a lot of tourism business combined with the shrinking of the financial services industry. And companies aren't in an expansion mode. How much relief is Washington going to send? It's difficult to say. We also have a change in government. So, there's a lot of unknowns we've got to deal with."

But variables notwithstanding, Lans says the destruction of the twin towers, though not as close to the surface as it was three months ago, continues to factor into leasing and buying plans. "When people are making decisions about where they're going to live or where they're going to work, or if I'm an employer deciding where I'm going to renew my office lease, Sept. 11 is still in the equation and will be for the near term. But once the site is cleaned up and there is building going on there, then I think new Yorkers and people in the greater New York area will be able to move past Sept. 11."

Paula Forys, assistant director of New York research for Cushman & Wakefield, says that while Downtown continues to suffer direct impact from the attacks, areas farther uptown are reacting more to the economy than to Sept. 11.-related issues. "Right now, especially in Midtown and Midtown South, it's definitely the economy that's playing more of a role in the real estate markets," Forys says. "Downtown is a different story because it's still being affected by the attacks. But for the most part, we're dealing with the economy more than the effects of the attacks. We're reading about layoffs every day that have no direct cause-and-effect relationship with the attacks."

And it is the economy, not the bombings, that is stalling real estate decisions, Forys says. "People want to know "how this recession is going to affect my bottom line and do I want to wait before I make any occupancy strategies.'"