Job Growth Still Key to Real Estate Market

NEW YORK CITY-Noted economist Dr. Irwin Kellner labeled the current job situation “the black cloud” over all of us during a Tuesday morning seminar on the rebounding economy sponsored by Ernst & Young, North Fork Bank, DSLnet and LePatner & Associates.

On the topic of outsourcing, Kellner noted that, while it has been a way of life for decades, the fact that now white-collar jobs are being outsourced has created a “depth of resentment.” The economic chair at Long Island’s Hofstra University also addressed increased capital spending, noting that companies are spending on equipment, not on space. Real estate space that he sees as in demand include hospitals, doctor’s offices, assisted living, gated communities, educational facilities, technology centers, bank branches and back offices. Another hot category is industrial-to-residential conversions.

“We’re seeing pockets of positive signs,” LePatner founder Barry LePatner said he sees a tremendous opportunity in the 532 miles of coastline product in the New York City environs. His projects to watch include the $400-million Silvercup Studios development and the Jersey City rejuvenation.