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C&W Report: Length of War to Determine Speed of Industry Recovery

NEW YORK CITY-Cushman & Wakefield released its first quarter numbers at an event here yesterday, showing a stabilization in vacancies but dips in overall asking rents. Of course, the continuing wild card is if Operation Iraqi Freedom will send the industry into a tailspin.

By Diana M. Rodriguez | Updated on April 02, 2003

NEW YORK CITY-Though overall Manhattan vacancy rates seem to have stabilized, a prolonged war in Iraq could send shockwaves through the local real estate sector. At least that is what Cushman & Wakefield senior managing director Ken Krasnow warned at an event held here yesterday.

Krasnow explained that, while the city’s asking rents have continued to slip, averaging about $41.97 in 1Q as opposed to $45.69 in the same quarter last year, vacancy rates have held steady. Overall, Manhattan saw office vacancies at 12.3% in the first quarter, fairly consistent with the fourth quarter’s 12% average but still a drop from the 10.4% rate experienced in the first quarter of 2002.

But whether or not the industry has emerged from rock-bottom numbers has yet to seen. The determining factor will be the length of the war and the corresponding rebirth in the economy and job market, said Kransnow.

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