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Historic Amount of Pre-Leasing Bodes Well for Recovery

NEW YORK CITY-C&W's Ken Krasnow says that two-million sf of residential conversions, the quick turnaround in building sales and a "historic" amount of pre-leasing at soon-to-be on the market offices are key signs that a recovery is in process here.

By Barbara Jarvie | Updated on May 26, 2004

NEW YORK CITY-All signs point toward recovery, according to speakers at Cushman & Wakefield’s 2004 Economic Forum at the Pierre Hotel. “Recovery has the capacity to be rapid if job growth continues,” said Janice Stanton, senior managing director, Analytics, for Cushman & Wakefield. “We’re seeing job growth now we should have seen in 2002.”

Stanton also said that another promising sign is the record prices for class A office sales—now edging toward $400 per sf in some cases. “C&W has flipped properties at 15% to 30% profit after only holding them for six months.” She anticipates that Wall Street will be “the engine” for job growth and expects the number of white-collar type positions to increase three-quarter of 1% this year and double that amount next year.

New York City is also faring well when compared to many locales. “New York doesn’t exist in a vacuum—it has no reason to gripe. It’s tight market.” Some possible risks she sees on the horizon include outsourcing, inflation and the possibility of an election-time terrorist attack. While she doesn’t feel outsourcing is as much of a New York-area concern, repeated attacks could “hamper New York recovery.”

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