The subprime crisis has also walloped the financial services sector, with about $83 billion of writedowns reported to date by the industry's leading firms. "We expect the total to climb above $83 billion" by the end of the year, Harbert said, adding that some experts estimate the figure could climb as high as $500 billion when all is said and done. However, Ivanhoe downplayed rumors of massive layoffs on Wall Street. He noted that the credit crunch has mostly revolved around financial service firms' fixed-income operations, which involve relatively small numbers of employees. He concurred with panelist Dennis Friedrich, president and COO of Brookfield Properties, who doubted that banks would slash jobs in their more profitable businesses to offset their losses in fixed income. Moreover, Harbert said, "we're less heavily dependent as a city" on the financial services sector compared to 1990, when a recession did lead to an increase in the office vacancy rate.

Friedrich reported that nationally as well as locally, Brookfield has seen "a very good third quarter" in leasing fundamentals. He added, "If we poll 10 of our tenants, at least half will say they're going to grow in different pockets."

And while leasing activity will remain essentially flat for the next few quarters, it isn't likely that supply will outstrip demand. Harbert noted that even if all the new office developments currently on the board get built, Manhattan will still have less office space in 2010 than it did in 1994.

The forthcoming Hudson Yards development--for which Brookfield is one of the bidders--isn't going to change that picture. "In eight years, maybe you'll have two of the buildings there completed," Ivanhoe said. "That's how long it takes to do something on a large scale here."