Having had a previous bad experience with a major office tenant, Stawski now tries to look for diversity in his buildings to avoid dependency on major lessees. "We had a 300,000-sf building, where a 50,000-sf tenant left. We lost a significant amount of cash flow," he explained. "Now, I don't like big tenants because they always move out at the wrong time…We don't want our building to go down the drain with our tenants, so we stick to smaller leases."

Speaking for a different industry, Hackett detailed her development plans in the multifamily sector. In December, the Clarett Group sold its interest in two buildings that it had under a joint venture with Post Properties in order to form a new JV with Prudential, she said. Now, the residential development partners are looking at space here on 107th Street and Broadway.

"We purchased the property and expect the condos there to be ready in early 2005," she stated, noting the deal is not yet finalized.

Despite the poor job market, Hackett is convinced that Big Apple real estate will survive the downturn. "We look over 30 years. Supply has historically been low here," she remarked, noting there will be a need for new multifamily products when the economy turns around.