Rechler: Investment Firms Are on the Hunt

MELVILLE, NY-”Leasing activity is becoming more vibrant,” said Reckson president and CEO Scott Rechler during the firm’s conference call to discuss second quarter results. He noted that financial services firms such as Citibank, Bear Stearns and Lehman Brother, which the firm notes is in the market for 500,000 sf, are leading the way. “It’s been an incredible quick turnaround.”

Rechler said the REIT had two of its best leasing quarters this year. He called Long Island and New York City markets “good” and the New Jersey, Westchester and Connecticut markets “continuing to recover. I expect to see a more balanced market and true pricing power to return in 2005.”

The firm inked an 86,800-sf early renewal with WestPoint Stevens that will enable a block of space at 1185 Ave. of the Americas to become available in 2007. It is also on track to complete $100 million in investment activity by the end of the year. Rechler said he believes residential development to be taking up space traditionally deemed office, noting that upwards of 50% of the company’s available land attracting buyers who are interested in potential residential development.