"We have 125,000 sf leases coming in the next 10 days," said William Macklowe, president of Macklowe Properties, Macklowe's company made history earlier this summer with the record-breaking $1.4 billion winning bid for the GM Building. He anticipates that leases in that property will remain in the $120 to $125 per sf range. "And deals are taking less time to close," he added.
And even on the residential front, things are picking up. Barbara Corcoran of the Corcoran Group noted that the "floodgates have opened" and properties, some that have been on the market for months, are now under contract. "We don't have enough product," she said.
"You have to be optimistic in this business," noted Steve Ross, CEO of the Related Cos. However, Leonard Stern, chairman and CEO of Hartz Mountain, said he wasn't optimistic there would be rental rate increases over the next four to five years. "The best buildings will always rent, the others ... ." he said.
"There is a lot more action out there," added James Emden, executive managing director for USI Realty Advisors LLC, who moderated the "Navigating the New York Real Estate Market--Landlord's Perspective" with his twin brother, Robert Emden, who serves as vice chairman for USI. "There is also a lot of money out there."
Both Emdens agreed that the turnout of more than 250 for the day-long conference that touched on topics including economic recovery, corporate real estate, real estate development and business growth, was another sign that things are on an upswing. "We tried to twist it and turn it for USI's first roundtable," said Robert Emden, adding that attendees responded to this different approach.
While Macklowe applauded the use of Liberty Bond financing outside of Lower Manhattan, Stern and Ross felt that money allocated for Downtown should stay Downtown.
"There is a lot of controversy," said Macklowe, "but any statement of a commitment to New York is a bright spot."
Ross and Stern were implicit that the future of New York depends on Downtown redevelopment.
"If corporations want to be in Midtown, they can afford it--they should pay the price," Ross said.
Stern, who has a concentration of office properties in New Jersey, said he's "probably responsible for taking more jobs out of Manhattan than any other developer." But he cautioned that "tax concessions for Midtown have done nothing else but reduce the city's revenues."
The trio agreed that the rebuilding process for the World Trade Center site will be a long, but beneficial one.
"When coupled residential units coming online, that part of the city will become a true 24/7 environment," said Ross.
Macklowe called Times Square a "bizarre offshoot of New York." He said "there are interesting buildings, but I don't there will be much office development unless a tenant says, 'I want to be there.' It's very difficult to build speculatively in New York today."
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